The following trial balance for Puteri was prepared by an inexperienced bookkeeper on 31 August 2016. The trial balance was incorrectly drafted and further errors were discovered requiring correction by journal entries.

Required: (a) Name and explain three types of error that would not be revealed by a trial balance. (b) Redraft the trial balance placing the difference in a Suspense Account. The following errors were discovered requiring correction by journal entries:

(1) Purchases of 6 300 had been recorded in the day book as 3 600 (2) Discount received of 600 had been posted to the debit side of the Discount Allowed Account. The entry in the cash book was correct. (3) Drawings of 2 500 have been entered in the Wages Account. (4) A payment to Ning, a supplier, of 1 750, had been correctly entered in the Bank Account, but no entry had been made in the account of Ning. (5) A payment by cheque for general expenses of, 730, had the entries reversed in the books. (6) Sales of goods to Wei of, 850, had been recorded in the Revenue Account, but no entry had been made in the account of Wei. (7) In August, Puteri sold a computer for 2 000, which had cost 11 000. Payment was made by cheque. At the date of the disposal the accumulated depreciation was 7 800. No entries had been recorded in the books.

Required: (c) Prepare the: (i) journal entries to correct the errors (1) to (7). Narratives are not required (ii) Suspense Account after the correction of all errors. (d) Prepare the Computer Disposal Account including the end of period transfer. (e) Evaluate the usefulness of preparing a trial balance at the end of an accounting period.

Cr. $ 100 000 7 500 Puteri Trial balance at 31 August 2016 Dr. $ Revenue Purchases 52 000 Returns outward 4600 Returns inward Discount allowed 8 600 Discount received 5 200 Wages 33 900 General expenses Capital Drawings Bank overdraft 8 000 Trade receivables Trade payables 19 300 Computers 35 000 Computers - provision for depreciation 166 600 14 350 20 000 6 500 10 350 15 200 173 900