Question 2 As the auditor of a business you discover the following items during your review of the financial statements and books of account that are not quite in compliance with the appropriate concepts. Required: List one appropriate concept to be applied and show the effect on the Income Statement and the Balance Sheet of the adjustments needed to account for these items. (i) No depreciation has yet been calculated for motor vehicles which has been bought last year, that cost RM200,000. The business writes off motor vehicles on cost over 4 years. (ii) The business pays for its lighting and heating usage in arrears. The business's books showed an accrual in connection with lighting & heating expenses of RM8,400 as at 1 January 2020 and an accrual of RM9,100 as at 31 December 2020. The cash book revealed that the business made payments totalling RM29,300 for lighting & heating during 2020. (iii) Motor vehicle insurance for a whole year in advance - RM1,200 - had been paid 3 months before the year-end. (iv) A customer owing 1% of the total receivables RM5 million at the year-end has been remaining to be outstanding for 9 months. A debtor owing RM2,000 at the year-end has been confirmed pass away and written off. (vi) The half-year's interest at 15% per annum on a bank loan of RM500,000 has not been entered on the bank statement until three days after the year end and has not been accounted for in the business records (7 marks each question; TOTAL=42 marks)