In the preparation of the final accounts of Ringway Chemists Ltd, the Audit Manager realized from a discussion with the Business Owner, that her salary for the year has not been taken and hence not recorded.

i. What accounting treatment would you recommend as the Schedule Officer on reconciling the above in relation to the final accounts preparation?
ii. What would be the impact of this information on the Income on the Income Statement and the Statement of Financial Position?

Answer rating: 100% (QA)

1 The accounting statements must be adjusted because the effect of this adjustment is material and ... View the full answer