Principles and Practice of Accounting - 6 mtp MTP

1. (a) State with reasons, whether the following statements are true or false: (i) Wages paid for erection of machinery are debited to Profit and Loss Account. (ii) Amount spent for the construction of temporary huts, which were necessary for construction of the Cinema House and were demolished when the Cinema House was ready, is capital expenditure. (iii) If the effect of errors committed cancel out, the errors will be called compensating errors and the trial balance will disagree. (iv)…

Savin & Co. purchased a machine for = 1,00,000 on 1.4.2021 Another machine costing ₹1,50,000 was purchased on 1.10.2022. On 31.3.2024 the machine purchased on 1.4.2021 was sold for 50,000. The company provides depreciation at 15% on Written Down Value Method. Prepare — (i) Machinery Account, (ii) Machinery Disposal Account and (iii) Provision for Depreciation Account. (10 Marks) (b) On 30" June. 2024, Cash Book of Ms. Suman (Bank Column of Account No. 1) shows a Bank Overdraft of =…

The Receipts and Payments account of Gold Smith Club prepared on 315' March, 2024 is as follows: Receipts and Payments Account Receipts =| Amount Payments Amount z z To Balance b/d 9,000/By Expenses (including 1,26,000 To Annual Income Payment for from Subscription | 91,800 sports material = 54,000) 42 Add: Outstanding By Loss on Sale of 3,600 of last year Furniture (cost received this year] 3,600 price = 9,000) 95,400 By Balance c/d 18,09,000 Less: Prepaid of} 1,800] 93,600 last…

The Balance Sheet of a Partnership Firm M/s Thomas & Associates consisted of two partners Albert and Andrew who were sharing Profits and Losses in the ratio of 5 : 3 respectively. The position as on 31-03-2024 was as follows: Liabilities = | Assets z Albert's Capital 8,20,000 | Land & Building 7,60,000 Andrew's Capital 6,60,000 | Plant & Machinery | 3,40,000 Profit & Loss A/c 2,24,000 | Furniture 2,18,960 Trade Creditors 1,09,600 | Stock 2,90,520 43 Sundry debtors 1,20,000…

(a) Mr. Prakash furnishes following information for his readymade garments business: (i) Receipts and Payments during 2023-24: Receipts Amount | Payments Amount z z Bank Balance as on Payment to Sundry 1-4-2023 16,250 | creditors 3,43,000 Received from Salaries 75,000 Sundry 4,81,000 debtors General expenses | 22,500 Rent and taxes 11,800 Cash sales 1,70,800 | Drawings 96,000 Capital brought in the business during 50,000 | Cash purchases 1,22,750 the year Balance at bank on Interest on 31-03-2024 36,600 Investment 9,750…

6. (a) Give necessary journal entries for the forfeiture and re-issue of shares: (i) Gama Pvt. Ltd. forfeited 9,000 shares of % 10 each fully called up, held by Varun for non-payment of allotment money of = 3 per share and final call of 4 per share. He paid the application money of = 3 per share. These shares were re-issued to Katen for % 8 per share. 46 (ii) Mr. Y, who was the holder of 10,000 preference shares…