Question 4. Correction of errors You have received following information from N Terprise 12 400 17 700 12 300 20 500 Bank overdraft 1 July 2011 Debtors 1 July 2011 Creditors 1 July 2011 Stock 1 July 2011 Bank 30 June 2012 Debtors 30 June 2012 Creditors 30 June 2012 Stock 30 June 2012 Bad debts Cash purchases Cash sales Creditors balances set off against amounts owing to debtors Depreciation on office equipment Cash purchase of new office equipment Discount allowed Discount received Freight inwards paid Payments to creditors Rates and taxes paid Receipts from debtors Sales returns Wages and salaries paid Other expenses paid 16 900 14 100 19 800 990 18 300 15 700 2 400 1800 7 500 1 600 800 2 400 139 400 5 100 211 600 11 300 28 000 3 600 Based on information provided by N Terprise your assistant have prepared following statement. Income statement of N Terprise for year end 30 June 2012 15,700 Sales Less Cost of goods sold Stock 1 July 2011 Purchases 20 500 18,300 2 400 41,200 Freight in 19 800 Less Stock 30 June 2012 21,400 (5700 Add Other operating income Receipts from debtors 211,600 Discount received 800 Total income Less Operating expenses 206,700 Other expenses Rates and taxes Wages and salaries 3 600 5 100 28 000 Payment to creditors Depreciation-office equipment Bad debts Discount allowed 139,400 800 990 1 600 179,490 27.210 Net profit Required: Review the statement for errors and amend the same as required