QUESTION $3$

The following errors were revealed after an investigation:

a$.$ The sales journal had been overcast by RM $1,200.$

b$.$ The purchases journal had been undercast by RM $2,200.$

c$.$ The discount column total of RM $200$ on the credit side of the cash book was not posted to the ledger account.

d$.$ Stationery purchased for RM $480$ for office use was recorded as office equipment.

e$.$ Insurance paid for RM $780$ was correctly recorded in the cash book but wrongly entered in Insurance account as RM $708.$

f$.$ Discount received of RM $180$ was treated as discount allowed.

Required:

A$)$ Give the journal entries, without narratives, necessary to correct the above errors.The following are trial balance of Clarissa Amanda Sdn$.$ Bhd$.$ as at $31"$t December $2021.$

Additional information:

i$.$ Closing stock was valued at RM $38,000($market value at RM $20,000).$

ii$.$ Wages amounting RM $2,000$ and salaries amounting RM $1,500$ are outstanding.

iii. Prepaid insurance amounted RM $150.$

iv$.$ Provide depreciation on plant and machinery at $5\%$ and on furniture and fixtures at $10\%.$

Required:

a$)$ Prepare Statement of Profit and Loss for the year ended ${31}^{t*}$ December $2021.$

b$)$ Prepare Statement of Financial Position for the year ended $31"$: December $2021.$