Bonanza Ltd. is a consultancy firm. Mr. Prakash Bhalla is a recently qualified CPA who has earlier worked in the auditing, taxation and consultancy side of a reputable professional accounting firm, is the owner of the firm. His firm provides consultancies for accounting and auditing. He has invested on the relevant items to start his business. Besides, he has also bought a car to travel to canvas for clients instead of earlier using public conveyance. Prakash employed one staff. He and his staff cater to small business owners by keeping their books of accounts using Tally ERP 9, a computerized accounting system. On a periodical basis, he forwarded financial reports to his clients and advise them accordingly. He also looks into his clients’ system and offer services like establishing proper costing system and other important management accounting services. Every time he completes a certain project/assignment, he would bill his clients on an adhoc project basis. However, when the proposed assignment/project takes a period longer than three months, his firm would bill the clients on a progressive basis. As a registered public accountant, he also perform routine audits like interim and final audits to ensure that his firm, Prakash & Co can give an opinion on the clients’ financial statements. After completion of his interim audits, the firm would bill for reimbursements for expenses incurred and part of the agreed audit fee. Refer to the case, and answer the following: 4. Identify and classify the accounts affected if Prakash Bhalla were to issue a check to pay for fixed assets like photocopying machine and furniture and fittings to be used in his company?
Bonanza Ltd. is a consultancy firm. Mr. Prakash Bhalla is a recently qualified CPA who has earlier worked in the auditing,
Prakash employed one staff. He and his staff cater to small business owners by keeping their books of accounts using Tally ERP 9, a computerized accounting system. On a periodical basis, he forwarded financial reports to his clients and advise them accordingly. He also looks into his clients’ system and offer services like establishing proper costing system and other important
As a registered public accountant, he also perform routine audits like interim and final audits to ensure that his firm, Prakash & Co can give an opinion on the clients’ financial statements. After completion of his interim audits, the firm would bill for reimbursements for expenses incurred and part of the agreed audit fee.
Refer to the case, and answer the following:
4. Identify and classify the accounts affected if Prakash Bhalla were to issue a check to pay for fixed assets like photocopying machine and furniture and fittings to be used in his company?
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