Principles and Practice of Accounting - 1 mtp MTP

1. (a) State with reasons whether the following statements are True or False: (i) Accounting Standards for non-corporate entities in India are issued by the Central Government. (ii) Subsidy received from the government for working capital by a manufacturing concern is a revenue receipt. (iii) Reducing balance method of depreciation is followed to have a uniform charge for depreciation and repairs and maintenance together. (iv) Discount at the time of retirement of a bill is a gain for the drawee.…

(a) Mr. Bhatt’s trial balance as on 31st March, 2024 did not agree. The difference was put to a Suspense Account. During the next trading period, the following errors were discovered: (i) The total of the Purchases Book of one page, ~ 5,615 was carried forward to the next page as % 6,551. (ii) A sale of % 462 was entered in the Sales Book as = 642 and posted to the credit of the customer. (iii) A return to…

3. (a) Lucky does not maintain proper books of accounts. However, he maintains a record of his bank transactions and also is able to give the following information from which you are required to prepare his final accounts for the year 2023: 1.1.2023 31.12.2023 z z Debtors 1,02,500 - Creditors - 46,000 Stock 50,000 62,500 Bank Balance - 50,000 Fixed Assets 7,500 9,000 Details of his bank transactions were as follows: z Received from debtors 3,40,000 Additional capital brought in…

5. (a) From the following information, draw up a Trial Balance in the books of Shri Hari Om as on 31S! March,2024: Particulars Amount | Particulars Amount Capital 4,20,000 | Purchases 1,08,000 Discount Allowed 3,600 | Carriage Inward 26,100 Carriage Outwards 6,900 | Sales 1,80,000 Return Inward 900 | Return Outwards 2100 Rent and Taxes 3,600 | Plant and Machinery | 2,42,100 Stok on 1% April 46,500 Sundry Debtors 60,600 Sundry Creditors 36,000 | Investments 10,800 Commission Received 5,400 |…

(a) Avent Limited is a company with an authorised share capital of % 1,00,00,000 in equity shares of = 10 each, of which 6,00,000 shares had been issued and fully paid up on 31% March, 2023. The company 7 proposes to make a further issue of 1,35,000 of these ~ 10 shares ata price of = 14 each, the arrangement of payment being : (i) % 2 per share payable on application, to be received by 31%! May, 2023; (ii)…