Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 Given below are independent situations: 1. A proprietor of the business bought a computer and printer from his personal bank account and booked it
1 Given below are independent situations: 1. A proprietor of the business bought a computer and printer from his personal bank account and booked it in the accounting books maintained by the company. 2. A company is not sure which accounting principle would be followed by providing for depreciation on machinery. Hence it books the entire machinery cost as expense 3. The company has received rent in advance and it has not booked it as income of this year. 4. The company had purchased land in an upcoming area for Rs. 1 crore and the its current value is Rs. 1.5 crore. The company still records it at Rs. 1 crore in the books and does not book the profit of Rs. 0.5 crores. 5. The company valued its inventories in one method last year and another method this year. 6. The markers and dusters of an educational institution have been booked as an expense of the institute. 7. The accountant determines that the company is in danger of going bankrupt and therefore refuses to certify the statements as prepared according to generally accepted accounting principles. 8. Mr. Sandy invests money in his business. In the books of the business,
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started