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Financial Accounting

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The book-keeper of Desker Limited extracted a trial balance on 31 December 2015 which failed to agree by £330, a shortage on the credit side of the trial balance. A suspense account was opened for the difference. In January 2016the following errors made were found: (a) Sales day book had been undercast by £100. (b) Sales of £250 to K. Hou had been debited in error to K. Hung’s account. (c) Rent account had been undercast by £70. (d) Discounts received account had been undercast £300. (e) The sale of motor vehicle at book value had been credited in error to sales account £360. You are required to prepare: a) Journal entries necessary to correct the errors (Marks: 10) b) Suspense account after the errors described have been corrected (Marks: 9) c) List and describe any three errors that do not affect the trial balance (Marks: 9)