Question 3 3 Points Ruchoca's father is the sole proprietor of Frends Gifts. a fum engaged in the sale of gift items. In the process of preparing financial statements, the accountant of the firm Mr. Goyal fell ill and had to proceed on leave Ruchica's father was urgently in need of the statements as these had to be submitted to the bank, in pursuance of a lon of Rs 5 lakh applied for the expansion of the business of the firm Ruhica who is studying Accounting in her school, volunteered to complete the work on scrutinising the accounts, the banker found that the value of building bought a few years back for Rs.7 Iskch has been shown in the books at Rs. 20 lakh, which is its present market value. Similarly, as compared to the last year, the method of valuation of stock was changed, tenulting in value of goods to be about 15 per cent higher Ale, the whole amount of Rs 70,000 spent on purchase of personal computer (expected life 5 yean) during the year had been charged to the profits of the current year. The banker did not rely on the financini data provided by Ruchica Adrise Rochica for the mistakes committed by her in the preparation of financial statements in the context of basic concepts in accounting Use the editor to format your answer Question 3 3 Points Ruchoca's father is the sole proprietor of Frends Gifts. a fum engaged in the sale of gift items. In the process of preparing financial statements, the accountant of the firm Mr. Goyal fell ill and had to proceed on leave Ruchica's father was urgently in need of the statements as these had to be submitted to the bank, in pursuance of a lon of Rs 5 lakh applied for the expansion of the business of the firm Ruhica who is studying Accounting in her school, volunteered to complete the work on scrutinising the accounts, the banker found that the value of building bought a few years back for Rs.7 Iskch has been shown in the books at Rs. 20 lakh, which is its present market value. Similarly, as compared to the last year, the method of valuation of stock was changed, tenulting in value of goods to be about 15 per cent higher Ale, the whole amount of Rs 70,000 spent on purchase of personal computer (expected life 5 yean) during the year had been charged to the profits of the current year. The banker did not rely on the financini data provided by Ruchica Adrise Rochica for the mistakes committed by her in the preparation of financial statements in the context of basic concepts in accounting Use the editor to format your