Auditor John Luck was auditing the accounting statements of Peter&Peter company. He had following observations. a) Peter&Peter company had put capital on the asset side of the balance sheet. Explain the accounting concept or convention which is applicable in this context and also comment whether this treatment is a violation or not. Response: - b) Peter&Peter company had recorded purchased materials $2000 and Paid cash to Mr.Samual $1500 in the journal and further classified in ledger without bill and voucher. Explain the accounting concept or convention which is applicable in this context and also comment whether this treatment is a violation or not. Response: - c) Peter&Peter company had paid the rent of 2020 in 2019 and some utility bills of 2020 in 2019. Explain the accounting concept or convention which is applicable in this context and also comment whether this treatment is a violation or not. Response: - d) Peter&Peter company had an office building, which they purchased in year 2000. Recognizing that the values of land have been increasing in the recent years. Peter&Peter Co increased the balance sheet amount of land from $50,000 to & 70,000. Explain the accounting concept or convention which is applicable in this context and also comment whether this treatment is a violation or not. Response