QUESTION

a) Show the accounting treatment (without the narratives) to correct the error

b) The net profit for the month ended 30 June 2019 before adjustments errors was RM18,450. Show the Statement of Corrected Net Profit

A) The accounts clerk for Master Solution Sdn Bhd (MSSB) extracted the trial balance as at 30 June 2019. The total credits exceeded the debit side by RM300 and a suspense account was opened for it. The following errors were discovered: i. Cheque payment of RM280 to Accounts Payable Alex was corrected credited the bank account but debited to Accounts Payable Alecia's account. ii. Sales of RM2,600 worth of goods to Joshua was correctly entered into Sales Account as RM2,600 but recorded in Accounts Receivable Joshua as RM2,900. iii. Purchase of Motor Vehicles worth RM6,500 was debited to Motor Vehicles Repairs Account. iv. RM250 commission received was debited to Commission Received Account and credited to Bank Account