Principles and Practice of Accounting - December 2022

1. (a) State with reasons, whether the following statements are True or False : (i) The financial statements are not prepared on the assumption that an enterprise is a going concern and will continue its operation for the foreseeable future. (ii) Periodic inventory system is a method of ascertaining inventory by taking an actual physical count. (iii) The provision for discount on creditors is often not provided in keeping with the principle of conservatism. (iv) Ifthe errors are detected after…

3. (a) T draws on J a bill of exchange for € 1,80,000 on 1* April, 2022 for 3 months. J accepts the bill and sends it to T, who gets it discounted from his banker for = 1,72,800. Timmediately remits = 57,600 to J. On the due date, T, being unable to remit the amount due, accepts a bill for € 2,52,000 for three months, which is discounted by J from his banker for = 2,40,660. J sends %…

PQR Limited issued 2,00,000 equity shares of ¢ 10 each payable as ® 3 per share on application, € 5-per share (including € 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 Mr. J, holding 5,000 shares ‘who failed to pay the allotment and call money and Mr. K, holding 10,000 shares, who failed to pay the call money. All these 15,000…