Oh hey Steve! What are you doing here? Shouldn't you be at the office working on finishing up my balance sheet? Haha
Hahah yeah yeah, I'm on my way into the office right now, I just had to pick up my car, it was getting an oil change done.
Oh of course, I was just picking up the brand new van me and my wife bought! We finally have a car big enough to fit our whole family in!
See! Isn't it nice? It was a little bit over our budget but I really think its worth the money!
Oh yeah I love it! I gotta get to the office now, I'll call you once I'm finished doing your Delivery Companies balance sheet. Drive safe!
Back at the office.....
Hmmm... Oh no I think John might have listed his brand new personal van as an asset in his business. I better give him a call this isn't right.
Hey John its Steve your accountant calling, I just wanted to leave you this message telling you that we can not list your new family van as an asset in your delivery business. That's a violation of the Generally Accepted Accounting Principles because it does not follow the rules of the Business Entity Concept....
In order to honour this Concept this you must keeep the accounting for your business seperate from the personal affairs of you, the owner of your Delivery Service Business.