State with reasons, whether the following statements are true or false : (i) Overhauling expenses for...

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State with reasons, whether the following statements are true or false : (i) Overhauling expenses for the engine of motor car to get better fuel efficiency is revenue expenditure. (ii) Depreciation is a non-cash expense and does not result in any cash outflow. (iii) Fees received for Life Membership is a revenue receipt as it is of recurring nature. If Closing Stock appears in the Trial Balance: The closing inventory is then not entered in Trading Account. It is shown only in the balance sheet. (iv) (v) Inventory Turnover Ratio is also known as Stock Turnover Ratio. (vi) If del-credere commission is paid to consignee, the loss of bad debts is to be borne by the consignor. (b) Discuss the limitations which must be kept in mind while evaluating the Financial Statements. (c) A Plant & Machinery costing 10,00,000 is depreciated on straight line assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by 40,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year. 6x2 =12 State with reasons, whether the following statements are true or false : (i) Overhauling expenses for the engine of motor car to get better fuel efficiency is revenue expenditure. (ii) Depreciation is a non-cash expense and does not result in any cash outflow. (iii) Fees received for Life Membership is a revenue receipt as it is of recurring nature. If Closing Stock appears in the Trial Balance: The closing inventory is then not entered in Trading Account. It is shown only in the balance sheet. (iv) (v) Inventory Turnover Ratio is also known as Stock Turnover Ratio. (vi) If del-credere commission is paid to consignee, the loss of bad debts is to be borne by the consignor. (b) Discuss the limitations which must be kept in mind while evaluating the Financial Statements. (c) A Plant & Machinery costing 10,00,000 is depreciated on straight line assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by 40,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year. 6x2 =12

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