Majda prepared a trial balance on 31 August 2011. The trial balance failed to agree and a suspense account was opened. It was discovered that all of the errors had been made in one of the trade receivable accounts, M.H. Supplies Ltd. Details of the account for August 2011 were as follows: M.H. Supplies Ltd account Date Description Dr Cr Balance 2011 $ $ $ 1 August Balance 1650 Dr 10 August Sales 460 2110 Dr 13 August Sales returns 60 2050 Dr 23 August Bank 1617 433 Dr 23 August Discount 33 466 Dr The following errors were found: 1 On 10 August goods, list price $800, less 20% trade discount, were sold to M.H. Supplies Ltd. The transaction was correctly recorded in the sales journal. 2 On 20 August a credit sale of goods, $1200, to M.H. Supplies Ltd, was correctly entered in the sales journal, but was posted to the account of M. Hardware Ltd. 3 On 23 August M.H. Supplies Ltd paid the balance on 1 August, less 2% cash discount. The transaction was correctly recorded in the cash book. REQUIRED

1. (a)Name the document sent to M.H. Supplies Ltd to record the transaction of 13 August 2011.[1]
2. (b)Name the type of error made on 20 August 2011.[1]
3. (c)Prepare the journal entries to correct the errors 1 to 3 above. Narratives are not required. Journal Dr Cr $[6]
4. (d)Prepare the suspense account, clearly showing the original difference on the trial balance. Suspense account[4]
5. (e)Calculate the correct balance owed by M.H. Supplies Ltd to Majda on 31 August.[4]
6. (f)Majda uses Information and Communications Technology (ICT) book-keeping software to prepare her accounts. State two benefits to Majda from using ICT book-keeping software. 1 2[4]