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MaRussiya [10]
3 years ago
5

Mr. Hamid is running his small retail business under the name of Hamid Store. He has recently hired Mr. Imran as a junior accoun

tant to maintain the books of accounts of his business. Mr. Imran has little knowledge in accounting. Recently, it has been observed that Mr. Imran wrongly treated installation charges of plant and machinery worth Rs. 500,000 as revenue expenditure under the heading of administration expenses. As a result, financial statements failed to reflect true and fair business affairs.
Business
1 answer:
prohojiy [21]3 years ago
3 0

The type of error committed by Mr Imran is the error of principle.

<u>Explanation:</u>

An error of principle is a mistake done in the accounting. Because of this mistake, the entry is done in the wrong account. As a result of this, there is violation in the fundamental principles of Accounting. The meaning of this principle is that the value recorded was correct but the account in which it was recorded was not correct.

In the example given in the question, as a result of the error of principle, there is understatement of the assets of the firm of Mr Hamid because the value that was to be recorded in the assets account is recorded somewhere else, in the account of charges of plant and machinery.

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Answer:

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In a democratic system of ruling when one party come into power after getting majority votes the main concern of the corporation unit is to know which government is in power or which political party has a chance to gain majority votes.

Every government that takes oath for next five year or defined year has its own policy on economic or for business. This predefined rules and policy may be differ from exciting government or may be followed the path of previous government. therefore corporation unit are always in a mood to go with coordination with new government to have maximum advantage

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Do you think Bitcoin should be regulated?
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2 years ago
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Answer:$100

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3 years ago
Valerie has a summer job hand-dying shirts that will be sold on the boardwalk. she is paid $3.50 per shirt. this is an example o
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Answer: pay for performance

                                                                 

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In the given case, Valerie  is earning from the summer job on the basis of production she do while on the job.

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3 years ago
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