(C) (d) (e) Explain how assets and liabilities are recognized in nancial statement. Differentiate between capital expenditures and revenue expenditures. giving an example in each case. Accounting is an art and a science. Discuss. Mr. Njoroge opened a W shop a_1 thggria town. The following are the transactions relating to his business for the month of May 2012. (i) (ii) (iii) (iv) ('0 On l5t May opened a bank account with KCB for the business and deposited sh. 300.000 On 831 May, he paid rent of lgsh. 50000 for two months in advance for a small room at W plaza. On 15th May, he furnished the store by installing new furniture worth sh. 120000 sold to him on credit by Chuka irniture store, the amount being payable after 3 months On 20\"1 May. received electricity bill for the month amounting to hgh 10,0 00, payable by 10Eb of the following month On 315' May, he withdrew lfll- 90,000 from the business account for his personal use Required: Show the effect of the above transactions on the accounting equation. Explain the concept of substance over form and illustrate two cases in which this concept is applicable. Explain the reason for provision for depreciation on Remnant assets