a) Explain what accountants mean by the concept of duality in relation to recording business transactions. b)

Question:

a) Explain what accountants mean by the concept of duality in relation to recording business transactions.
b) Knowing that you have some accounting experience, a friend has sought your advice regarding a business he is thinking of purchasing. The for the business reports plant and equipment as:
Plant and equipment at cost .......................... $400 000
Less accumulated depreciation ....................... $150 000
$250 000
Required:
Your friend wishes to know what these three figures mean and whether the $250 000 is a reliable indication of the current market value of the plant and equipment.
c) Explain the meaning of accrual accounting. Include an example in your explanation.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...