Amsyari Enterprise bought the secondhand motor vehicles for RM40,000. He incurred a major overhaul cost of RM10,000. The car was repainted for RM2,000. He also spent RM800 on road tax and insurance. He recorded RM40,000 as the cost of the motor vehicles whereas the other expenditure was treated as expenses. How the effect of the accounting error on Amsyari Enterprise’s statement of profit and loss and statement of financial position?

Amsyari Enterprise bought the secondhand motor vehicles for RM40,000. He incurred a major overhaul cost of RM10,000. The car was repainted for RM2,000. He also spent RM800 on road tax and insurance. He recorded RM40,000 as the cost of the motor vehicles whereas the other expenditure was treated as expenses. How the effect of the accounting error on Amsyari Enterprise’s statement of profit and loss and statement of financial position?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 59P

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Amsyari Enterprise bought the secondhand motor vehicles for RM40,000. Heincurred a major overhaul cost of RM10,000. The car was repainted for RM2,000.He also spent RM800 on road tax and insurance. He recorded RM40,000 as the cost of the motor vehicles whereas the other expenditure was treated as expenses.How the effect of the accounting error on Amsyari Enterprise’s statement of profit and loss and statement of financial position?
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