Explain the appropriate accounting treatment

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On 10 July 2018, the finance manager of Top Bhd resigned after a very short notice. Further investigation that he has misapropriated cash of RM200,000 in May 2017 from the company's bank account by falsifying purchase invoices.

Required :

Question 1: Explain the appropriate accounting treatment for the above event in the financial statements of Top Bhd.

Reference no: EM132523025

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