Principles and Practice of Accounting - December 2023

1. (a) State with reasons, whether the following statements are True or False: @ The financial statement must disclose all the relevant and reliable information in accordance with the full disclosure principle. Gi) The gain from sale of capital assets is added to revenue to ascertain the net profit of the business. (ii) Depreciation is non-cash and non- operating expense which is to be provided for if there are profits. (iv) Sum of the year’s digit method is an example…

2. (a) From the following particulars, prepare a Bank Reconciliation Statement as on 31st December, 2022. @® Debit balance (overdraft) shown by the pass book = 2,48,000. Gi) Cheques of € 2,10,000 were issued in the last week of December, but of these = 1,40,000 only were presented for payment. Gii) A Cheque for % 19,200 drawn for the payment of telephone bill had been entered in the cash book as = 29,200 but was shown correctly in the bank…

4. (a) The following is the schedule of balances as on 31.03.23 extracted from the books of M/s RM & Co. Particulars Dr. Cr, z zl Bank charges 24,000 Buildings 9,00,000 Capital A/c 19,48,000 Carriage Outwards 30,000 Cash at bank 39,000 Cash in hand 21,000 Discount allowed 36,000 Discount received 24,000 Drawings 1,80,000 misconay Charges 33,000 } Freight on purchases 18,000 Furniture & fixtures 3,21,000 General office expenses 45,000 Insurance Premium 82,500 Interest on loan 35,000 Loan 6,00,000 Printing and…

A Ltd issued 25000 equity shares of € 100 each at a premium of % 25 per share payable as follows: * On Application 50 On Allotment 50 including premium, and On Final Call 25 Applications were received for 29000 shares. Letter of regret were issued to applicants for 4000 shares and shares were allotted to all other applicants. Mr. A, the holder of 150 shares, failed to pay the allotment and call money, the shares were forfeited. Show the…