Principles and Practice of Accounting - 10 mtp MTP

1. (a) State with reasons, whether the following statements are True or False: (i) |The rule of nominal accounts states that all expenses and losses are recorded on credit side. (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…

2. (a) The cash book of Hari showed a debit balance of % 1,36,800 as on 31.12.2023 which was in disagreement with balance as per pass book. Following discrepancies were noticed: (i) | Dividend of = 18,000 was deposited in the bank of which Hari had no information (ii) Cheque was issued to Suresh of = 14,780 on 18.12.2023 which was recorded in cash book as % 14,870. 73 (iii) Cheques totaling of ~ 55,000 were deposited into bank on…

3. (a) The following trial balance is the trial balance of a Proprietor as on 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 25,000 Doubtful…

X, Y and Z were in a firm sharing profit and loss as 3: 2: 1. Their Balance Sheet on 31° March, 2024 was as follows: Liabilities Amount | Assets Amount X’s Capital 78,000 | Goodwill 12,000 X’s Capital 42,000 | Patents 30,000 Z's Capital 31,000 | Machinery 60,000 Investment Investment (Market value 25,000 = 27,600) Fluctuation Fund 6,000 | Stock 30,650 Workmen's Compensation 12,000 | Debtors 50,000 Trade Creditors 31,000 | Less: Provision for Employee’s doubtful debts 4,000 46,000…

5. (a) Physical verification of stock in a business was done on 234 June, 2023. The value of the stock was = 4,80,000. The following transactions took place between 23" June, 2023 and 30" June, 2023: 77 (i) Out of the goods sent on consignment, goods at cost worth = 24,000 were unsold. (ii) Purchase of = 40,000 were made out of which goods worth = 16,000 were delivered on 5'" July, 2023 (iii) Sales were = 1,36,000 which include…

P Limited issued 6,00,000 equity shares of = 10 each at a premium of % 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 forfeited…