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You are given the following information about a sole trader as at 1 January 2012:
The value of assets and liabilities were:
(a) Calculate the capital account balance as at 1 January 2012.
(b) On 1 January 2012, office equipment is purchased on credit. Select the relevant boxes below to show what effect this transaction will have on the account balances. You must choose ONE answer for EACH line.
No change a
(c) Which of the following is best described as a current liability? Select ONE answer.
Your client has asked you to provide guidance on the following potential accounting changes: (1) Change from straight-line method of depreciation to sum-of-the-years'-digits (2) Ch
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