Answered: In the preparation of the final…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter4: Posting To A General Ledger

Section: Chapter Questions

Problem 1ANFS

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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?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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