Neith is a trader. Her financial year ends on 31 March. Neith prepared the following trial balance which contains errors. Neith Trial Balance at 31 March 2021 Debit Credit $ $ Fixtures and equipment at cost 300000 Provision for depreciation of fixtures and equipment 120000 Inventory 9100 Trade receivables 16100 Provision for doubtful debts 322 Petty cash 100 Bank overdraft 11400 Trade payables 3200 Capital at 1 April 2020 160000 Sales 107498 Purchases 41520 Rent and rates 16000 Office expenses 9000 General expenses 8150 Suspense 210594 506492 506492 Additional information 1 The value of inventory on 31 March 2021 was included in the trial balance. On 1 April 2020 the inventory was valued at $8800. 2 On 30 March 2021, a motor vehicle was sold at book value, $2750. The disposal was correctly recorded but no entry was made in the account of the purchaser. The purchaser was expected to pay the amount due on 30 April 2021. REQUIRED

1. (a)Prepare the corrected trial balance at 31 March 2021. Neith Corrected Trial Balance at 31 March 2021 Debit $ Credit $ Fixtures and equipment at cost Provision for depreciation of fixtures and equipment Inventory Trade receivables Provision for doubtful debts Petty cash Bank overdraft Trade payables Capital at 1 April 2020 Sales Purchases Rent and rates Office expenses General expenses[6]
2. (b)Prepare the journal entry to correct each of the above errors. Narratives are not required. Neith Journal Error number Details Debit $ Credit $[10]
3. (c)Complete the table by placing a tick (✔) to indicate the effect of correcting each error 2 to 5. Ignore depreciation of non-current assets. The effect of correcting error 1 has been shown as an example. Error number 1 2 3 4 5 Increases capital Decreases capital No effect on capital ✔[4]

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