Reference no: EM132595970

Question - A) you have been asked to prepare the final accounts for w.smith, a sole trader for the year ended 31st December 2013 w. smith has forwarded to you all books of prime entry and ledgers and in addition has given you the following information

1. Mr Smith has taken 2000 out of the business bank account to take his wife to a holiday

2. Up to last year machinery and vehicle used in the business had been depreciated using reducing balance method w. smith thinks that they should now be depreciated using straight line method

3. Mr. Smith is confident given his order book that the business will continue to operate in its present form for many years

4. Mr smith has purchased ten staplers four flip charts and four packet of whiteboard markers which will be used in the business for the next couple of years.

5. Mr smith informs you that he has found an unopened electrical bill for 900 which was for the quarter October to December 2013

REQUIRED - In each case identify and explain the main accounting concept being highlighted and indicate how each should be treated in the final accounts.