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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)

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
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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You have been asked to prepare the final accounts for W Smith, a sole trader, for the year ended 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 on Up to last year, the machinery and vehicle used in the business had been i) depreciated using the reducing balance method. W Smith thinks that they should now be depreciated 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 operate iv) 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 whiteboard v) which was for the quarter October to December 2013. Mr Smith informs you that he has just found an unopened electricity bill for £900 Required 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) -
Transcribed Image Text:You have been asked to prepare the final accounts for W Smith, a sole trader, for the year ended 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 on Up to last year, the machinery and vehicle used in the business had been i) depreciated using the reducing balance method. W Smith thinks that they should now be depreciated 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 operate iv) 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 whiteboard v) which was for the quarter October to December 2013. Mr Smith informs you that he has just found an unopened electricity bill for £900 Required 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) -
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