Akil prepared his trial balance at 29 February 2024. The total of the debit side was $83640 and the total of the credit side was $84025. Akil later discovered the following errors. 1 The total of the sales journal for January 2024, $3416, had been credited to the sales returns account. 2 A direct debit for insurance, $115, had been credited to both the bank account and the insurance account. 3 Discount allowed, $47, had been credited to the account for discount received. 4 A payment for office equipment, $52, had been debited to the stationery account. 5 The purchases journal for February had been overcast by $90. REQUIRED

1. (a)(i)State which business document shows when the direct debit for insurance was paid[1]
2. (a)(ii)State which of the errors listed in 1 to 5 above is an error of principle[1]
3. (b)Prepare the journal entries to correct errors 1 to 3 only. Narratives are not required. Akil Journal Error number Details Debit $ Credit $[7]
4. (c)(i)State why a balance may remain on the suspense account after errors 1 to 5 have been corrected.[1]
5. (c)(ii)Prepare the suspense account. Bring down any remaining balance at 1 March 2024. Akil Suspense account Date Details $ Date Details $[5]
6. (d)Akil's draft profit for the year, before correction of the errors, was $17 420. REQUIRED (d) Calculate Akil's profit after items 1 to 5 have been corrected.[5]