QUESTION 2 Okonkwo Pharmaceutical Distributors Limited, a company incorporated under the Companies and Allied Matters Act (CAMA) 2020 and based in Onitsha, Anambra State, prepared its draft financial statements for the year ended 31 December 2023. The draft profit for the year was N3,840,000 and the draft capital employed was N18,500,000. During the subsequent audit, the following errors were discovered: (i) Goods returned by a customer, Emeka Stores, valued at N96,000 had been entered correctly in the returns inward day book but had been debited (instead of credited) to Emeka Stores' account in the receivables ledger. (ii) An accrual for electricity charges of N54,000 had been omitted from the draft accounts. (iii) A cheque of N210,000 received from the sale of an old delivery motorcycle had been credited to the sales account. The motorcycle had a net book value of N175,000 at the date of disposal. (iv) Closing inventory had been overvalued by N88,000 due to the inclusion of damaged goods at cost rather than net realisable value. (v) Discount received of N37,200 from a supplier had been credited to the discount allowed account. (vi) A bad debt of N45,600 previously written off had been recovered and the cash received was credited to the receivables control account only. Required: (a) Prepare journal entries (with narrations) to correct each of the errors (i) to (vi) above. Clearly state whether each error affects the trial balance or not. (15 marks) (b) Prepare a statement showing the corrected profit for the year ended 31 December 2023. (6 marks) (c) State the corrected capital employed figure after all adjustments. (4 marks) Total: 25 marks