Principles and Practice of Accounting - September 2024

1. (a) State with reasons, whether the following statements are True or False : s (i) Nominal Accounts are balanced at the end of the Accounting 7 Year. (ii) Overhaul Expenses of a second-hand machinery purchased are Revenue Expenditure. (iii) Valuation of inventory at cost or net realizable value is based on Principle of Conservatism. (iv) A Promissory Note can be made payable to the Bearer. (v) The Receipts and payment account for a non — profit organization follows the…

The following Trial Balance is the Trial Balance of a Proprietor as on 10 March 31% 2024. Prepare Trading and Profit & Loss Account for the year ending March 31% 2024 and a Balance Sheet as at that date. Particulars Amount Particulars Amount Plant and Machinery | 5,00,000 | Capital 4,00,000 Office Furniture 26,000 | Sundry Creditors 5,20,000 Opening Stock 4,80,000 | Sales 48,00,000 Motor Van 1,20,000 | Bills Payable 56,000 Sundry Debtors 4,57,000 | Provision for Doubtful 25,000 Debts…

X, Y and Z were in a firm sharing profit and loss as 3 : 2 : 1. Their 10 Balance Sheet on 31 March, 2024 was as follows : Liabilities Amount Assets Amount X’s Capital 78,000 | Goodwill 12,000 Y’s Capital 42,000 | Patents 30,000 Z’s Capital 31,000 | Machinery 60,000 Investment Investment (Market Fluctuation Fund 6,000 | value = 27,600) 25,000 Workmen’s Compensation 12,000 Trade Creditors 31,000 | Stock 30,650 Employee’s Provident Debtors 50,000 Fund 12,000 Less …

(3) 50% of Donation is to be capitalized. (4) Entrance fee are to be treated as Revenue Income. (5) 8% Interest has accrued on Investments for 5 months. (6) Billiards Table costing = 30,000 were purchased during the last year and 20,000 were paid for it. Physical verification of stock in a business was done on 23" June, 2023. The value of the stock was % 4,80,000. The following transactions took place between 23" June, 2023 and 30" June, 2023…

P Limited issued 6,00,000 equity shares of % 10 each at a premium of 15 % 2 per share, payable as = 3 on application, = 5 on allotment (including premium) and the balance in two calls of equal amount. Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently…