Identify the main accounting concepts being highlighted

Assignment Help Financial Accounting

Reference no: EM132752299

Mr Amir is the accountant for Titian Enterprise. He was asked to prepare the final accounts for the company for the year ended 31 December 2019. Mr Amir was given the following information for him to prepare the final accounts.

i. Mr Leman, the owner of Titian Enterprise, had taken RM3,000 out of the company's bank account to purchase a motorbike for his son.

ii. During the Covid19 pandemic, Mr Leman asked Mr Amir to assume that the company will not operate starting January the next year. However, Mr Amir did not agree to this, and he is confident that the business will continue to operate in its present form for many years.

iii. The building and vehicle had been depreciated using the straight-line method. This year, Mr Leman thinks that they should now be depreciated using the reducing balance method.

REQUIRED

Problem 1: In each case, identify and then explain the main accounting concepts being highlighted or violated and indicate how each should be treated in the final accounts.

Reference no: EM132752299

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