You recently got an internship and for your first task, you have been asked to respond to a clients email. Your client Makeni & Sons have sent in the below information relating to their business activities in the past month:

1 July Capital of 40,000 was introduced by Makeni & Sons. 37,500 was paid into the bank and 2,500 was kept as cash in hand

6 July Goods were purchased for 6,000 and paid by cheque

7 July Makeni & Sons purchases goods worth 1,000 on credit from Timothy Briggs & Co

7 July Sales of 8,000 were made to Mooney on credit

9 July Rent was paid at the cost of 1,400 by cheque

14 July Office equipment were purchased for 20,000 by cheque

18 July Makeni & Sons paid for a Makeup Artistry Course costing 1,000 from the business bank account

20 July Mooney returns goods worth 100

20 July Timothy Briggs & Co offered Makeni & Sons a 5% cash discount if payment is made within 7 days

23 July Makeni & Sons returns goods which he had originally bought for 160 by cheque

26 July Makeni & Sons withdraws 1,800 cash from the bank

26 July Makeni & Sons pays Timothy Briggs & Co account by cheque.

Required:

Write to Makeni & Sons, explaining the following:

1 whether the accounting information that were provided by Makeni & Sons are useful and the reasons for suggesting that

2 the accounting assumptions and the regulatory body that provide guidance in the development of the accounting principles.

3 Advice Makeni & Sons drawing on knowledge from the duality concept. Your advice should centre on what the business owns using your T-account balances.