4 marksAccounting Standards and Conceptual Framework

CAPE Accounting Unit 1 · 2015 · Paper 2 · Question 1(c)

Identify and explain the concept which allows B. Ross to record the motor car invested in the business as a non-current asset.

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Other parts of this question

1(a)(i)State the meaning of the historical cost concept.[2 marks]
1(a)(ii)State the meaning of the prudence concept.[2 marks]
1(b)What amount should B. Ross record for the motor car in the books of the business?[2 marks]
1(d)Show the journal entries required to record the formation of B. Ross' business on 1 June 2014.[6 marks]
1(e)Show the closing entries to record the loss and the drawings for the period.[3 marks]
1(f)Outline THREE controls that the management can implement to ensure the integrity of its accounting records.[6 marks]
1(g)Using Table 1 provided as an insert, show the effect of EACH of the transactions (i) to (v) in the Cash Book and Statement of Comprehensive Income of BisNess…[10 marks]

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