Principles and Practice of Accounting - 3 mtp MTP

1. (a) State with reasons whether the following statements are True or False: i. Insurance claim received on account of plant and machinery completely damaged by fire is a capital receipt. ii. In the balance sheet of Angel Limited, preliminary expenses amounting to ₹15 lakhs and securities premium account of ₹105 lakhs are appearing; The accountant can use the balance in securities premium account to write off preliminary expenses. iii. The financial statements must disclose all the relevant and reliable…

M/s Manas, Profit and loss account showed a net profit of = 32,00,000, after considering the closing stock of = 30,00,000 on 31° March, 2024. Subsequently the following information was obtained from scrutiny of the books: (i) Purchases for the year included % 1,20,000 paid for new electric fittings for the shop. 18 (ii) M/s Manas gave away goods valued at ~ 3,20,000 as free samples for which no entry was made in the books of accounts. (iii) Invoices for…

29th September, 2023, the bank credited an amount of % 4,69,600 received from a customer of Akhil, but the advice was not received by Akhil until 1st October, 2023.

6. A bill of exchange for = 5,60,000 was discounted by Akhil with his bank. This bill was dishonoured on 28th September, 2023 but no entry had been made in the books of Akhil.