State with reasons, whether the following statements are true or false : (i) Expenses in connection...
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State with reasons, whether the following statements are true or false : (i) Expenses in connection with obtaining a license for running the Cinema Hall is Revenue Expenditure. (ii) Re-issue of forfeited shares is allotment of shares but not a sale. (iii) If the effect of errors committed cancel out, the errors will be called compensating errors and the trial balance will disagree. (iv) There are two ways of preparing an account current. JMKS © The Institute of Chartered Accountants of India SIOS TAM (2) JMKS (audelly2 way oitebnuo solo bre colmonh endoussa to P.T.O. (v) when there is no partnership deed prevails, the interest on loan of a partner to be paid @ 6%. (vi) Interest coverage ratio indicates the firm's ability to pay off current interest and installments.. (6 Statements x 2 Marks = 12 Marks) (b) Differentiate between provision and contingent liability. (4 Marks) (c) Give journal entries (narrations not required) to rectify the following: (i) Purchase of Furniture on credit from Nigam for Rs.3,000 posted to Subham account as Rs.300. (ii) A Sales Return of Rs.5,000 to Jyothy was not entered in the financial accounts though it was duly taken in the stock book. (iii) Investments were sold for Rs.75,000 at a profit of Rs. 15,000 and passed through Sales account. (iv) An amount of Rs. 10,000 withdrawn by the proprietor (Darshan) for his personal use has been debited to Trade Expenses account. (4 Marks) State with reasons, whether the following statements are true or false : (i) Expenses in connection with obtaining a license for running the Cinema Hall is Revenue Expenditure. (ii) Re-issue of forfeited shares is allotment of shares but not a sale. (iii) If the effect of errors committed cancel out, the errors will be called compensating errors and the trial balance will disagree. (iv) There are two ways of preparing an account current. JMKS © The Institute of Chartered Accountants of India SIOS TAM (2) JMKS (audelly2 way oitebnuo solo bre colmonh endoussa to P.T.O. (v) when there is no partnership deed prevails, the interest on loan of a partner to be paid @ 6%. (vi) Interest coverage ratio indicates the firm's ability to pay off current interest and installments.. (6 Statements x 2 Marks = 12 Marks) (b) Differentiate between provision and contingent liability. (4 Marks) (c) Give journal entries (narrations not required) to rectify the following: (i) Purchase of Furniture on credit from Nigam for Rs.3,000 posted to Subham account as Rs.300. (ii) A Sales Return of Rs.5,000 to Jyothy was not entered in the financial accounts though it was duly taken in the stock book. (iii) Investments were sold for Rs.75,000 at a profit of Rs. 15,000 and passed through Sales account. (iv) An amount of Rs. 10,000 withdrawn by the proprietor (Darshan) for his personal use has been debited to Trade Expenses account. (4 Marks)
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Statistics For The Life Sciences
ISBN: 9780321989581
5th Edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner
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