Principles and Practice of Accounting - 4 mtp MTP

1. (a) State with reasons whether the following statements are True or False: i. Subsidy received from the government for working capital by a manufacturing concern is a revenue receipt. ii. If the effect of errors committed cancel out, the errors will be called compensating errors and the trial balance will disagree. iii. The financial statements must disclose all the relevant and reliable information in accordance with the Full Disclosure Principle. iv. Limited Liability Partnership (LLP) is governed by Indian…

(a) A Firm purchased an old Machinery for = 37,000 on 1% January, 2020 and spent = 3,000 on its overhauling. On 18 July 2021, another machine was purchased for = 10,000. On 1% July 2022, the machinery which was 25 purchased on 1st January 2020, was sold for = 28,000 and the same day a new machinery costing = 25,000 was purchased. On 1* July, 2023, the machine which was purchased on 1* July, 2021 was sold for =…

(a) Dr. Gulleria started private practice on 1st April, 2023 with ₹ 2,00,000 of his own fund and % 3,00,000 borrowed at an interest of 12 p.a. on the security of his life policies. His accounts for the year were kept on a cash basis and the following is his summarized cash account: 26 Receipts =| Payments z Own Capital 2,00,000 | Medicines Purchased 2,45,000 Loan 3,00,000 | Surgical Equipment 2,50,000 Prescription Fees 6,60,000 | Motor Car 3,20,000 Visiting Fees…

4. (a) The following is the Balance Sheet of A, B, C on 31st December, 2023 when they decided to dissolve the partnership: Liabilities = | Assets z Creditors 3,000 | Sundry Assets 72,750 A's Loan 7,500 | Cash 750 Capital Accounts: A 22,500 B 27,000 Cc 13,500 73,500 73,500 The assets realized the following sums in installments: Inst. z I 1,500 I 4,500 lll 5,850 IV 9,000 Vv 30,150 51,000 The expenses of realization were expected to be 750…