QUESTION ONE:

The following trial balance was prepared by Kim stores as at $31$st Dec $2022$

Dr $$sh$$ Cr $$sh$$

Sales $60000$

Purchases $20000$

Drawings $4000$

Furniture $6000$

Creditors $8000$

Debtors $18000$

Motor expenses $1200$

Rent expenses $800$

Bank overdraft $1000$

Capital account $15000$

Equipment $38000$

Suspense account $4000$

$8800088000$

After some investigations on the ledger account the following errors were discovered

$($i$)$The purchase account had been overstated by sh$.2000$

$($ii$)$Cash sales made amounted to sh$.5000.$ Cash account was debited with sh$.500$ while sales A$/$c was credited with sh$.300.$

$($iii$)$The furniture account balance had been overstated by sh$.18000$

Required

a$)$Prepare the necessary journal to correct the above errors. $(4$ marks$)$

b$)$Prepare the corrected trial balance without suspense account. $(4$ marks$)$

c$)$Prepare the Profit & Loss for the period ending $31$st December $2022.(8$ marks$)$

d$)$Prepare the Balance Sheet as at December $31$st $2022.(4$ marks$)$