Amsyari Enterprise bought the secondhand motor vehicles for RM40,000. He incurred a major overhaul cost of RM10,000. The car was repainted for RM2,000. He also spent RM800 on road tax and insurance. He recorded RM40,000 as the cost of the motor vehicles whereas the other expenditure was treated as expenses. How the effect of the accounting error on Amsyari Enterprise’s statement of profit and loss and statement of financial position?
Amsyari Enterprise bought the secondhand motor vehicles for RM40,000. He incurred a major overhaul cost of RM10,000. The car was repainted for RM2,000. He also spent RM800 on road tax and insurance. He recorded RM40,000 as the cost of the motor vehicles whereas the other expenditure was treated as expenses. How the effect of the accounting error on Amsyari Enterprise’s statement of profit and loss and statement of financial position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. Amsyari Enterprise bought the secondhand motor vehicles for RM40,000. He
incurred a major overhaul cost of RM10,000. The car was repainted for RM2,000.
He also spent RM800 on road tax and insurance. He recorded RM40,000 as the
cost of the motor vehicles whereas the other expenditure was treated as expenses.
How the effect of the accounting error on Amsyari Enterprise’s statement of
and loss
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