A proprietor of the business bought a computer and printer from his personal bank account and booked it in the accounting books maintained by the company. 2. A company is not sure which accounting principle would be followed by providing for depreciation on machinery. Hence it books the entire machinery cost as expense 3. The company has received rent in advance and it has not booked it as income of this year. 4. The company had purchased land in an upcoming area for Rs. 1 crore and the its current value is Rs. 1.5 crore. The company still records it at Rs. 1 crore in the books and does not book the profit of Rs. 0.5 crores. 5. The company valued its inventories in one method last year and another method this year. 6. The markers and dusters of an educational institution have been booked as an expense of the institute. 7. The accountant determines that the company is in danger of going bankrupt and therefore refuses to certify the statements as prepared according to generally accepted accounting principles. 8. Mr. Sandy invests money in his business. In the books of the business

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Lets analyze each scenario based on generally accepted accounting principles GAAP and identify any potential issues 1 The proprietor using personal fu... View the full answer