(a) State with reasons, whether the following statements are True or False: (i) Trade Discount is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(a) State with reasons, whether the following statements are True or False: (i) Trade Discount is a reduction granted by a supplier from the list price of goods or services on business considerations for prompt payment. (ii) M/s. XYZ & Co. runs a cafe. They renovated some of the old cabins. Because of this renovation some space was made free and number of cabins was increased from 15 to 18. The total expenditure incurred was 30,000 and was treated as a revenue expenditure. (iii) Valuation of inventory, at cost or net realizable value, whichever less, is based on principle of Conservatism. (iv) In case of bill of exchange, the drawer and the payee may not be the same person but in case of a promissory note, the maker and the payee may be the same person. (v) A Partnership firm cannot own any Assets. (b) (vi) Since company has existence independent of its members, it continues to be in existence despite the death, insolvency or change of members. (6 x 2 = 12 Marks) Distinguish between Provision and Contingent Liability. (4 Marks) (c) X purchased a machinery on 1st January 2017 for 4,80,000 and spent * 20,000 on its installation. On July 1, 2017 another machinery costing 2,00,000 was purchased. On 1st July, 2018 the machinery purchased on 1st January, 2017 having become scrapped and was sold for 2,90,000 and on the same date fresh machinery was purchased for *5,00,000. Depreciation is provided annually on 31st December at the rate of 10% p.a. on written down value. Prepare Machinery account for the years 2017 and 2018. (a) State with reasons, whether the following statements are True or False: (i) Trade Discount is a reduction granted by a supplier from the list price of goods or services on business considerations for prompt payment. (ii) M/s. XYZ & Co. runs a cafe. They renovated some of the old cabins. Because of this renovation some space was made free and number of cabins was increased from 15 to 18. The total expenditure incurred was 30,000 and was treated as a revenue expenditure. (iii) Valuation of inventory, at cost or net realizable value, whichever less, is based on principle of Conservatism. (iv) In case of bill of exchange, the drawer and the payee may not be the same person but in case of a promissory note, the maker and the payee may be the same person. (v) A Partnership firm cannot own any Assets. (b) (vi) Since company has existence independent of its members, it continues to be in existence despite the death, insolvency or change of members. (6 x 2 = 12 Marks) Distinguish between Provision and Contingent Liability. (4 Marks) (c) X purchased a machinery on 1st January 2017 for 4,80,000 and spent * 20,000 on its installation. On July 1, 2017 another machinery costing 2,00,000 was purchased. On 1st July, 2018 the machinery purchased on 1st January, 2017 having become scrapped and was sold for 2,90,000 and on the same date fresh machinery was purchased for *5,00,000. Depreciation is provided annually on 31st December at the rate of 10% p.a. on written down value. Prepare Machinery account for the years 2017 and 2018.
Expert Answer:
Related Book For
Statistics For The Life Sciences
ISBN: 9780321989581
5th Edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner
Posted Date:
Students also viewed these accounting questions
-
State with reasons whether the following statements are true or false. a. In the model Yi = B1 + B2Di + ui, letting Di take the values of (0, 2) instead of (0, 1) will halve the value of B2 and will...
-
State with reasons whether the following statements are true or false: a. Despite perfect multicollinearity, OLS estimators are best linear unbiased estimators (BLUE). b. In cases of high...
-
State whether the following statements are true or false and explain why. (a) It is more difficult to estimate a population proportion precisely if its value is near 0.50. (b) A 2 goodness-of-fit...
-
QUESTION ONE Matrix X sells computer hardware and software components as well as other ancillary items to customers all over South Africa. Matrix X also provides installation of hardware and software...
-
Perform the following accounting for the receivables of Evans and Tanner, a law firm, at December 31, 2010. Requirements 1. Start with the beginning balances for these T-accounts: Accounts...
-
The IRS does not have to furnish the taxpayer with information concerning which of the following items? a. The way the taxpayers return was selected for audit. b. The procedures for appealing an IRS...
-
Table B. 24 contains data on home rental prices and home sales. Use all possible regressions to build a model for these data. Perform a residual analysis on the final model and comment on model...
-
The accounting records of North East Distributors, Inc., reveal the following: Requirement 1. Compute cash flows from operating activities by the indirect method. Use the format of the operating...
-
Image transcription text 1. [#751] Exploding 1 point A mass breaks suddenly into two parts, masses M and m, with speeds I and v respectively and carrying a total kinetic energy K. If ML = R = 4.2,...
-
John Fuji (birthdate June 6, 1981) moved from California to Washington in December 2018. His earnings and income tax withholding for 2019 for his job as a manager at a Washington apple-processing...
-
Q3: Construct Influence lines of RD and MA hinge 3- m 300
-
True Or False In an emergency situation in which the patient is comatose or too ill to comprehend what is being said, the doctor can render treatment without informing the patient of the risks...
-
True Or False Discounting an award reduces losses to the plaintiff.
-
True Or False A 1983 action occurs when a defendant acts under color of a state statute, ordinance, or regulation and violates a plaintiffs civil rights.
-
True Or False In assessing the expected recovery in a case, attorneys may consult trial reporters and professional journals.
-
In what respect is immunity a complete defense?
-
Nite Lite Factory produces two similar products - small lamps and desk lamps. The total plant budget is P640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp...
-
The following table shows the rates of total return in successive years from 2004 to 2008 for the Sprott Canadian Equity Fund and for the benchmark Toronto Stock Exchange S&P/TSX Composite Index. By...
-
In a study of the effects of smoking cigarettes during pregnancy, researchers examined the placenta from each of 58 women after childbirth. They noted the presence or absence (P or A) of a particular...
-
Human beta-endorphin (HBE) is a hormone secreted by the pituitary gland under conditions of stress. An exercise physiologist measured the resting (unstressed) blood concentration of HBE in two groups...
-
Researchers measured the number of neurons in the CA1 region of the hippocampus in the brains of eight persons who had died of causes unrelated to brain function. They found that these data were...
-
Describe what sexual harassment is and what forms it can take.
-
Describe what is meant by retaliatory and constructive discharge and how to defend a claim for unfair discharge.
-
Explain public policies that protect employees from unlawful discharge.
Study smarter with the SolutionInn App