You have been asked to prepare the final accounts for W Smith, a sole trader, for the yearended 31 December 2013. W Smith has forwarded to you all books of prime entry and ledgers,and in addition, has given you the following information:i)holiday.Mr Smith had taken £2,000 out of the business bank account to take his wife onUp to last year, the machinery and vehicle used in the business had beeni)depreciated using the reducing balance method. W Smith thinks that they should now bedepreciated using the straight-line method.i)in its present form for many years.Mr Smith is confident, given his order book that the business will continue to operateiv)markers which will be used in the business for the next couple of years.Mr Smith had purchased ten staplers, four flip charts and four packets of whiteboardv)which was for the quarter October to December 2013.Mr Smith informs you that he has just found an unopened electricity bill for £900RequiredIn each case, identify and then explain the main accounting concepts being highlighted andindicate how each should be treated in the final accounts.(Ctrl) -

Accounting concepts are based on accounting assumptions and condition which paves the base for…

Answered: In each case, identify and then explain…

In each case, identify and then explain the main accounting concepts being highlighted and indicate how each should be treated in the final accounts. (Ctrl)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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