The following information relate to the business of Katwishi as at $31-12-16$

K$000$

Purchases $64,700$

Sales $125,600$

Returns inwards $6,340$

Returns outwards $1,900$

Debtors $11,250$

Creditors $7,900$

Equipment$-$cost $18,000$

Vehicles $$cost $9,000$

Stock $5,000$

Accumulated Depreciation$-$ Equipment $1,500$

Accumulated depreciation$-$ Vehicles $600$

Carriage inwards $900$

Carriage outwards $270$

Commission received $300$

Repairs $1,300$

Electricity $1,800$

Wages and salaries $11,000$

Rent and Rates $8,700$

Interest paid $1,400$

Stationery and postage $2,600$

Fixed Account Deposit $10,000$

Bank deposit account $8,000$

Discount received $3,460$

Discount allowed $5,760$

VAT creditor $1,360$

PAYE creditor $500$

$10\%$ Loan from B$.$Bull payable in $203514,000$

Capital $7,100$

NOTES

Stock on $31/12/16$ was valued at K$7,000,000$ The bookkeeping was done by unqualified bookkeeper.

The following errors were discovered at $31/12/16$

$($a$)$ A sale of goods to Chanda for K$2500000$ was debited in the sales account and credited in

Chanda$$s account.

$($b$)$ The discount received column of the cash book for K $500000$ was not posted to the general

ledger.

$($c$)$ The purchases account was overcast by K$400000$ and at the same time commission received

was undercast by K$200000.$

$($d$)$ Goods sold to Mulenga.C on credit for K$200000$ were not entered in Mulenga$$s account.

$($e$)$ A payment for rent and rates by cheque for K$8700000$ was entered in the cash

book as K$7800000.$

$($f$)$ The account of a customer was undercast by K$100000.$

$($g$)$ K$500000$ paid for purchase of old office equipment had been entered in purchases account.

$($h$)$ A balance of K$100000$ owing by a debtor, Chishimba, had been omitted from the list of

balances.

Required:

$($a$)$ Prepare journal entries to correct the above errors $(5$Marks$)$

$($b$)$ Prepare suspense account $(5$ Marks$)$

$($c$)$ Prepare a trial balance after the correction of the above errors $(5$Marks$)$

$($d$)$ Prepare Statement of Profit or Loss and Other Comprehensive Income for the period

$(5$Marks$)$

$($e$)$ Prepare a statement of Financial Position $(5$Marks$)$

$[$Total:$25$ Marks $]$