$2$

BBM$205/03$

At the end of the previous year the provision for doubtful debts was RM$4,516.$ The account receivables, including the irrecoverable balance of RM$3,574,$ have been analysed as follows:

$\backslash$table$[[$Age of debt Balance:,RM$],[$Less than $30$ days,$36,591],[30$ days to $59$ days,$18,700],[60$ days and over,$9,{722}_{?}$

Identify and explain the accounting concept referred to in the following cases:

a$.$ A piece of land bought at RM$30,000$ was recorded at RM$30,000$ even though its market value was RM$180,000.$

b$.$ Revenue from business activity and the expenses that incurred to generate the $\frac{3}{-}$ revenue are recorded in the same accounting period.

C$.$ Business is expected to operate indefinitely.

d$.$ Always cautious when reporting the accounting information, not to overstate the assets and understate the liabilities.

e$.$ The personal expenses incurred by the owner should be recorded in the drawings account. Revenue is recorded at the time goods or services are sold.

$(3$ marks each$)$