1) Prepare the accounting records and financial statements for Corr, a sole trader furniture business, as explained overleaf. (60 marks)

Module Title: Introduction to Financial Accounting

ASSIGNMENT QUESTION

1) Prepare the accounting records and financial statements for Corr, a sole trader furniture business, as explained overleaf. (60 marks)

2) The owner of Corr does not understand the reporting of assets. Some examples of the owner’s confusion include not understanding why the buying of assets has not reduced profits for the year, not understanding what depreciation is or why there are two categories of assets. Explain what assets are and how the reporting of them provides useful information. (20 marks)

3) Explain the causes of the cash held by Corr at the 30 September 2019 being a different amount to the amount of profit made during the year.