Principles and Practice of Accounting - June 2023

1. (a) State with reasons, whether the following statements are True or False: (i) As per Concept of Conservatism the accountant should provide for all possible - losses, but should not anticipate income. ; (ii) Expenses in connection with obtaining a license for running the Cinema Hall are Revenue Expenditure. Gii) Under or over — casting of a subsidiary book is an example of error of commission. (iv) If Del-credere commission is paid to consignee, the loss of bad debts…

Sons of Surat consigned 500 toys to Amar & Sons of Ahmadabad at a cost of = 800 each. Consignor paid freight = 8,000 and insurance < 2,500. During transit, 80 toys were totally damaged. Amar & Sons took delivery of remaining toys and paid = 14,100 as local taxes. Amar & Sons sent a bank draft to Akbar & Sons for = 80,000 as advance payment and later sent an account sale showing that 400 toys had been sold…

4. (a) Following is the Receipts and Payments account of Pune Medical Aid Society for the year ended 31-12-2022. i Receipts and Payments Account for the year ended 31-12-2022 Receipts Amount Payments Amount is z= To Opening cash in hand 12,000 | By Medicine supply 35,000 To Subscription 65,000 | By Honorarium to Doctors 15,000 To Donations 25,000 | By Salaries 36,000 To Interest on inverinen (10%) 10,000 | By Sundry expenses. 950 To Charity show collection 16,500 | By…

A, B and C were trading in partnership sharing profits and losses in the proportion of 4:3:3. The balances in the books of the firm as on 31% December, 2022 subject to final adjustment were as under: Debit Credit Amount | Amount = z Capital Accounts A 2,25,000 B 1,12,500 Cc 1,35,000 Current Account A 36,000 B 54,000 Cc . 54,000 Land and Building i 1,80,000 Furniture and Fixtures 33,750 Stock 2,81,250 Debtors 45,000 Bank Account 90,000 Profit for the…

(a) BP Limited issued a prospectus inviting applications for 1,20,000 equity shares of 2 10 each at a premium of = 2 per share payable as follows : On Application — %38per share On Allotment — %5per share (including premium) On First and Final Call — %4per share Applications were received for 3,60,000 equity shares. Applications for 80,000 shares were rejected and the money refunded. Shares allotted to remaining applications as follows: Category No. ofshares Applied No. of shares Alloted…