Nikita is a trader. The totals of her trial balance at 30 June 2021 did not agree. The debits exceeded the credits by $2600. Nikita opened up a suspense account. The following errors were later discovered. 1 Insurance of $2500 had been entered as $4500 in the insurance account. The correct entry had been made in the cash book. 2 The total of the discount received column in the cash book of $500 had been debited to the discount allowed account in the general ledger. 3 Credit sales of $1400 to Kajal had been correctly entered in the sales account, but debited as $1000 in Kajal's account. 4 A cheque of $700 received from Anisah had been correctly entered in the cash book, but credited to Aisha's account.

1. (a)Prepare journal entries to correct errors 1 to 4. Narratives are not required.[10]
2. (b)Prepare the suspense account. Start with the difference on the trial balance.[5]
3. (c)Complete the statement to show the effect on the profit for the year of correcting errors 1 to 4. Where the error does not affect profit write 'no effect'. Calculate the corrected profit for the year.[5]