Question
Hi, I need help with this letter please, I am having so much trouble and do not understand it, Thank you so much QUESTION :
Hi, I need help with this letter please, I am having so much trouble and do not understand it, Thank you so much
QUESTION : Accounting Concepts
As part of your continuing professional development as a graduate accountant at JLL Accounting Pty Ltd, the Managing Partner (Janelle Ledger) has asked you to review each of the following separate cases where a client has violated at least one of the accounting assumptions, concepts or definitions that you studied at university in Accounting For Business.
The Managing Partner (Janelle Ledger) has again asked that you prepare your explanations in the form of a formal business letter addressed to her (not the clients). If she is satisfied with your explanations, this letter will then be used as the basis of a response to these clients. In your letter, you need to provide the following for each of the three separate cases:
Explain the main accounting concept or assumption that has been violated, and;
Describe what the correct treatment should be in each case.
1.Luke, the owner of a market garden, paid for repairs to the gutters of his home using the business bank account.He recorded this as a debit to Maintenance Expense and credit to Cash at Bank in the business accounts.
2.Han, the owner of a transport business, is aware that the loss of large sums of money is probable because several customers were close to bankruptcy. The customers concerned probably would not be able to pay their debts. Han has decided that no allowance should be made because the losses have not yet occurred.
3.Leia, the owner of a small bakery specialising in large, cinnamon rolls, recorded the entire cost of a new oven to an expense account in the year the oven was purchased.Leia believes that the oven will be useful to her for 7 years.
- Date your letter the 6th July 2021
- Address your letter to: Janelle Ledger (Managing Partner), JLL Accounting Pty Ltd, 44 The Parade, Norwood, SA, 5067
- Set out your letter with subheadings to separate each part of your letter as you address each of the individual cases.
- No specific word count is prescribed. However, given the nature of the questions, it would be expected that the entire letter (including address and signoff) should require no more than one A4 page.
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