1. 400 paid for a printer is written off as an expense rather than capitalised as the company does not capitalise items that cost less than 500. Identify the underlying accounting concept for this practice and support your answer with explanation. (3 marks) 2. On 31 March 2020, a proprietorship paid cleaning charges for March 2020 by Internet transfer from bank account 320. (a) Describe the effect of the transaction on the accounting equation. (2 marks) (b) Prepare journal entry to record the transaction. Omit the narrative. (2 marks) 3. By reference to IAS 2 Inventories, determine whether the following costs should be treated as inventory costs: () (1) Indirect labour Sales commission (4 marks)