Hannah prepared a trial balance but its totals did not agree. A suspense account was opened. She later discovered the following errors: 1 Rent receivable, $4900, had been debited to the rent payable account. 2 General expenses paid, $1200, had been correctly entered in the cash book, but had been recorded in the general expenses account as $2100. 3 No debit entry had been made for purchases on credit from Ploy, $3400. REQUIRED

1. (a)Prepare the entries in the general journal to correct the errors 1 to 3. Narratives are not required. General journal Debit $ | Credit $[7]
2. (b)Prepare the suspense account showing the original difference in the trial balance. Suspense account Details $ | Details $[4]
3. (c)Hannah had prepared draft financial statements before correcting the errors. Her draft profit was $15600. REQUIRED Complete the following table by calculating the effect of correcting each error on the draft profit for the year. Calculate the revised profit for the year. Revision of profit Draft profit for the year $ 15600 Increase $ | Decrease $ 1 Rent receivable, $4900, had been debited to the rent payable account. 2 General expenses paid, $1200, had been correctly entered in the cash book, but had been recorded in the general expenses account as $2100. 3 No debit entry had been made for purchases on credit from Ploy, $3400. Revised profit for the year[5]
4. (d)(i)State the difference between the following types of errors which would not affect the balancing of the trial balance. Commission and principle[4]
5. (d)(ii)Compensation and reversal