Required: (a) Open a suspense account for the difference between the trial balance totals. (6 marks)

(b) Prepare the journal entries necessary to correct the errors and eliminate the balance on the suspense account. Narratives are not required. (24 marks

The bookkeeping system of Johnny is not computerised, and at 31 March 2021 the bookkeeper was unable to balance the trial balance. The trial balance totals were: Debit Credit RM1,796,100 RM1,852,817 Nevertheless, he proceeded to prepare draft financial statements, inserting the difference as a balancing figure in the statement of financial position. The draft statement of profit or loss showed a profit of RM141,280 for the year ended 31 March 2021. He then opened a suspense account for the difference and began to check through the accounting records to find the difference. He found the following errors and omissions: (0) RM8,980 - the total of the sales returns book for March 2021, had been credited to the purchases returns account. (ii) RM9,600 paid for an item of plant purchased on 1 October 2020 had been debited to plant repairs account. The company depreciates its plant at 20% per annum on a straight-line basis, with proportional depreciation in the year of purchase. (ii) The cash discount totals for the month of March 2021 had not been posted to the general ledger accounts. The figures were: Discount allowed of RM836 and Discount received of RM919. For discounts allowed, it was not anticipated that these customers would take advantage of these cash discounts when the invoices were first issued. (iv) RM580 insurance prepaid at 31 March 2020 had not been brought down as an opening balance. (v) The balance of RM38,260 on the telephone expense account had been omitted from the trial balance. (vi) A car held as a non-current asset had been sold during the year for RM4,800. The proceeds of sale were entered in the cash book but had been credited to the sales account in the general ledger. The original cost of the car RM12,000, and the accumulated depreciation to date RM8,000, were included in the motor vehicles account and the accumulated depreciation account. The company depreciates motor vehicles at 25% per annum on a straight-line basis with proportionate depreciation in the year of purchase but none in the year of sale