Reference no: EM133174654

Question - You are preparing the year-end financial statements and a number of adjustments have been identified:

i) Telephone rental has not been paid for the past three months

ii) The value of non-current assets has fallen due to wear and tear through use

iii) A tenant owes us rent for this accounting period

iv) Debenture interest has not been paid for the year

v) A trade receivable has gone bust and cannot pay their bill

For each of the above:

a) Explain how the figures would be adjusted in the financial statements.

b) State the effect this would have on the profit.