- X BASIC ACCOUNTING - BPS, BLM,BLG 23,BCS23.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools BASIC ACCOUNTIN... X ? Sign In 1 / 2 100% ED do Share 1. 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? 2. Distinguish the difference between Bad Debts and Provision for Doubtful Debts, indicating the accounting treatment given to an increase/decrease in the Provision for Doubtful Debts and the impacts generally on Income Statements and Statements of Financial Statements. 3. Depreciation can be defined as the measure of cost or revalued amount of economic benefits of a tangible fixed asset that has been consumed during a period. State the principle or conventions that support depreciation and indicates the different measures of this cost (depreciation) as an expense, and assess each measures' input on Income Statement and the Balance Sheet. 4. The objective of financial accounting information is to provide information about the business performance (Income Statement), financial position (Balance Sheet) and financial solvency (Cash Flows) to interested parties. Discuss the underlined items. Doc. No.: EXM/F/03 Revision No.: 2 Page No.: 1/1 Issue No.: 1 Date: 12/04/06 Author: EC Last Update: 15/05/15 Approved: PROVOST H [ Ch