Principles and Practice of Accounting - November 2019

1. (a) State with reasons, whether the following statements are True or False: @ ‘Trade Discount is a reduction granted by a supplier from the list price of goods or services on business considerations for prompt payment. Gi) 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…

30% September, 2018, the bank account of XYZ, according to the bank column of the cash book, was overdrawn to the extent of $8,062. An examination of the Cash book and Bank Statement reveals the following: G) A cheque for = 11,14,000 deposited on 29th September, 2018 was credited by the bank only on 38rd October, 2018. (ii) A payment by cheque for = 18,000 has been entered twice in the Cash book. (ii) On 29th September, 2018, the bank…

Anand of Bangalore consigned to Raj of pune, goods to be sold at invoice price which ' represents 125% of cost. Raj is entitled to a commission of 10% on gales at invoice price and 25% of any excess realised over invoice price. The expenses on freight and insurance incurred by Anand were ₹12,000. The account sales received by Anand shows that Raj has effected sales amounting to 71,20,000 in respect of 75% of the consignment. His delling expenses to…

5. (a) An inexperienced book. keeper has drawn up a Trial balance for the year ended 31st March, 2019. : Particulars — Debit(t) Credit(=) Provision for Doubtful Debts 250 . = Cash Credit Account 1,654 - Capital i = 4,591 Trade payables | = 1,637 Due from customers 2,983 - Discount Received 252 - Discount Allowed 1 = 733 Drawings ; 1,200 = Office Furniture » 2,155 - Carriage Tnerardl 1 = 829 Purchases 10,923 = Returns itera : …

B Limited issued 50,000 equity shares of %10 each payable as %3 per share on application, t 5 per share (neluding = 2 as premium) on allotment and & 4 per share on call. All these shares were subscribed. Money due on all shares was fully received except from X, holding 1000. shares who failed to pay the allotment-and call money and Y, holding 2000 shares, failed to pay the call money. All those 3,000 shares were forfeited. Out of…