State with reasons, whether the following statements are true or false : (i) Expenses in connection...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 (iv) An amount of Rs. 10,000 withdrawn by the proprietor (Darshan) for his personal use has been debited to Trade Expenses account.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)
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...
-
What are the three workflows in the revised SELECT Perspective (Apperly et al., 2003)?
-
What is the maximum amount that can be contributed to a defined contribution pension plan?
-
Use the transforms in Fig. 10.1.2 to find the inverse Laplace transforms of the functions in Problems 23 through 32. F(s) = $-3/2
-
An electron moves in a straight line at a speed of \(6.0 \times 10^{7} \mathrm{~m} / \mathrm{s}\). Calculate the magnitude and direction of the magnetic field at a position \(5.0 \mathrm{~mm}\)...
-
Had the dealer engaged in deceptive advertising? Why or why not? Leota Sage saw a local motorcycle dealers newspaper advertisement for a MetroRider EZ electric scooter for $1,699. When she went to...
-
1. Where cursor implementation can be used? 2. List down the applications of List. 3. What are the advantages of linked list? 4. Mention the demerits of linked list? 5. What are the operations...
-
A heart pacemaker, shown in the following figure, consists of a switch, a battery, a capacitor, and the heart as a resistor. When the switch S is at P,the capacitor charges; when S is at Q, the...
-
Define and discuss 4 key challenges our global society faces over the next 50 years and propose solutions we can apply today?
-
The SEC brings civil lawsuits against individuals who are accused of violating one or more securities laws, regulations, or rules. Using the Internet, visit the Securities and Exchange Commissions...
-
Which of the following is not true with regard to predication? 1. Predication is generally the starting point for a fraud examination. 2. Predication would suggest that the suspected perpetrator...
-
After reading this chapter, you should have an understanding about the advantages and disadvantages of ADR. Using the Internet, find a private mediation and arbitration firm, such as National...
-
Which of the following is not a goal of introductory questions? 1. Establish a theme for the interview. 2. Establish a baseline for interviewee reactions. 3. Solicit the confession before the...
-
Imagine you are a sitting federal judge, and this case comes before you. A woman (x) charges another woman (y) with rape. Both have been partners for a five-year period. Both presently live in...
-
On 1/1/2023 a bond was authorized to issue at Face value of 6,000,000 Stated interest rate: 5% Interest Payments: Semi-annually on January 1 and July 1 Mature in 10 years, year-end at December 31...
-
Subprime loans have higher loss rates than many other types of loans. Explain why lenders offer subprime loans. Describe the characteristics of the typical borrower in a subprime consumer loan.
-
Two drugs, zidovudine and didanosine, were tested for their effectiveness in preventing progression of HIV disease in children. In a double-blind clinical trial, 276 children with HIV were given...
-
The following is a sample of computer output from a study. Describe the problem and the conclusion, based on the computer output. Y = number of drinks in the previous 7 days Two-sample T for...
-
The accompanying partially complete contingency table shows the responses to two treatments: (a) Invent a fictitious data set that agrees with the table and for which x2s = 0. (b) Calculate the...
-
What does the Richter scale measure?
-
Where do earthquakes occur?
-
Climates farther from the equator usually have (a) lower average temperatures. (b) higher solar intensity. (c) more precipitation. (d) more water.
Study smarter with the SolutionInn App