How to indicate effect on statement of financial position

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As the auditor of a business you discover the following items during your review of the financial statements and books of account that are not quite in compliance with the appropriate concepts.

Required:

Problem 1: Indicate the effect on the statement of financial position and the profit and loss of the adjustments needed to account for these items.

(i) No depreciation has yet been calculated for motor vehicles that cost RM20,000. The business writes off motor vehicles on a straight-line basis over 4 years.

(ii) Wages amounting to RM2,500 for the final week of the year had not been paid or accounted for by the end of the accounting year.

(iii) Motor vehicle insurance for a whole year in advance - RM1,200 - had been paid 3 months before the year-end.

Reference no: EM132584096

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