Treatment of certain financial transactions

Treatment of certain financial transactions

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i have been asked to advise a friend on the accounting treatments of certain transactions which he considers might affect his financial statements for the year ended 31st december 2004. There are two things i need advice on

1.The business paid for a televison advertising campaign during the year at a cost of £2,800. it is estimated by my friend that this will lead to an overall increase in sales of 15%. half of this increase was achieved in 2004 and the other half is expected to be achieved in 2005. what accounting concepts or accounting principles would i refer this to.

2. he took stock costing £500 from the business at the end of the year for his own use. he removed the stock on 31st december 2004 after the year end stock count had taken place. no adjustment was made to the stock balance to take account of his action. again waht do i do what accounting concepts or accounting pronciples do i refer him to.

Anon

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By User deleted
07th Oct 2005 20:21

lol..

I almost fell off my chair!

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By neileg
07th Oct 2005 12:33
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