Question 3 On the 31 December 2018, Ostrom Limited's trial balance did not balance. As the debit side exceeded the credit side, a temporary suspense account with a credit balance of 4,130 was created. On further investigation, the bookkeeper discovered the following errors: 1. Depreciation of equipment had been undercharged by 400. 2. A sale of goods on credit for 2,500 had been omitted from the sales account. 3. Installation costs of 2,000 on a new machine had been recorded as a revenue expense 4. A purchase of materials of 1,200 has been recorded in the purchases account as 2,100 5. On paying a supplier of goods, a cash discount amounting to 160 had been taken, even though payment was made outside the time limit. 6. Inventory of stationery at the 31 December 2018 amounted to 550. Due to an error, this inventory had been excluded from the trial balance. 7. Cash book receipts from customers of 75 have been debited to the payables control account. The correct entry was made in the cash book. 8. The bookkeeper was not sure how to record a receipt 500 from the owner's bank account, and she made the entry Dr Bank and Cr Suspense. 9. The purchases account had been undercast by 80. 10. A credit entry of 80 in the sundry income account had been incorrectly extracted on the list of balances as a debit balance. 11. Bank charges of 30 had been omitted from the cash book. Requirement (a) Prepare joumal entries to correct each of the above errors. Narratives are not required. 8 Marks (b) Open a suspense account and show the corrections to be made. 4 Marks