Zarita prepared a trial balance at 31 March 2018. The trial balance totals agreed. The following errors were later discovered. 1 Sales on credit to Winchester, $830, had been recorded in the sales journal as $380. 2 Discount allowed to Bloom, $60, had been credited in the discount allowed account and debited in Bloom's account. 3 Computer expenses, $900, had been recorded in the computer account. 4 A purchase of goods from Stilson, $420, had been posted to the account of Filton.

1. (a)Name each type of error in 1 to 4. 1 2.. 3.. 4[4]
2. (b)Explain why the trial balance totals agreed although there were four errors in the books.[2]
3. (c)Prepare the entries in the general journal to correct errors 1 to 4. Narratives are not required. General Journal | | Debit $ | Credit $ | |:-----|:--------|:---------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |[8]
4. (d)Before Zarita corrected the errors she had calculated a draft profit for the year of $6800. REQUIRED (d) Complete the following table to show the effect of correcting each error on the draft profit for the year. Where there is no effect write 'No Effect'. Calculate the revised profit for the year. Statement of Corrected Profit for the year ended 31 March 2018 | Error | Increase $ | Decrease $ | $ | |:------|:-----------|:-----------|:-----| | Draft profit for the year | | | 6800 | | 1 | | | | | | | | | | 2 | | | | | | | | | | 3 | | | | | | | | | | 4 | | | | | | | | | | Revised profit for the year | | | |[6]