The draft final financial statements of RST Ltd for the year ended 30 April 20X3 showed a net profit for the year of £78,263.

During the subsequent audit, the following errors and omissions were discovered. At the draft stage a suspense account had been opened to record the net difference.

1. Trade receivables were shown as £55,210. However:

a. Bad debts of £610 had not been written off;

b. The existing provision for doubtful debts, £1,300, should have been adjusted to 2 per cent of trade receivables;

c. A provision of 2 per cent for discounts on trade receivables should have been raised.

2. Rates of £491, which had been prepaid at 30 April 20X2, had not been brought down on the rates account as an opening balance.

3. A vehicle held as a non-current asset, which had originally cost £8,100 and for which £5,280 had been provided as depreciation, had been sold for £1,350. The proceeds had been correctly debited to bank but had been credited to sales. No transfers had been made to a disposals account.

4. Credit purchases of £1,762 had been correctly debited to the purchases account but had been credited to the supplier's account as £1,672.

5. A piece of equipment costing £9,800 and acquired on 1 May 20X2 for use in the business had been debited to the purchases account. (The company depreciates equipment at 20 per cent per annum on cost.)

6. Items valued at £2,171 had been completely omitted from the closing inventory figure.

7. At 30 April 20X3 an accrual of £543 for electricity charges and an insurance prepayment of £162 had been omitted.

8. The credit side of the wages account had been under-added by £100 before the balance on the account had been determined.

Required

Using relevant information from that given above:

a. Prepare a statement correcting the draft net profit.

b. Post and balance the suspense account?