Principles and Practice of Accounting - 9 mtp MTP

1. (a) State with reasons, whether the following statements are Ture or False: (i) If Closing Stock appears in the Trial Balance then it does not enter in Trading Account. It is shown only in the Balance Sheet. (ii) If the amount is posted in the wrong account or it is written on the wrong side of the account, it is called error of principle. (iii) Accounting Standards can override the statute. (iv) Promissory Note is different from Bill of…

Mr. Sarvesh Kumar as on 31% March,2024 did not tally and the difference was posted to Suspense Account. On a scrutiny of the books the following errors were detected: (i) The total of Sales Returns Book for January 2024 has been casted short by = 1,000. (ii) Freight paid for installation of a Machine = 6,500 was posted to the Freight Account as = 5,600. (iii) Goods of the value of = 2,500 returned by a customer were entered in…

Receipts and Payments Account of Vandana Sports Club for the year ended 31% March, 2024 are as follows: Receipts and Payments Account Receipts Amount | Payment Amount (8) () To Balance b/d By Salaries 1,55,000 Cash in hand 5,200 By Rent & Electricity 69,750 Cash at Bank 35,500 40,700 | By Library Books 10,500 To Subscriptions 2,95,000 | By Newspaper & Magazines 16,600 To Entrance fees 50,000 | By Sports Equipment 28,500 To Miscellaneous 19,850 | By Sundry Expenses 71,050…

(a) Anu and Manu are carrying on business in partnership and sharing profits & losses in the ratio of 5:3. The firm’s Balance Sheet as on 31%*March, 2024 was as follows: Balance Sheet as on 31 March,2024 Liabilities Amount (®) | Assets Amount Capital Accounts: Building 3,80,000 Anu 2,80,000 | Machinery 1,43,000 Manu 2,50,000 | Furniture 85,000 Long Term Loan 2,00,000 | Trade Receivables 1,64,000 Trade Payables 1,19,500 | Inventories 48,400 Outstanding liabilities 16,200 | Investments 15,200 Cash & Bank…

5. (a) Manish closed his books of account on 31%March, each year. Inventory taking for the year ended 31% March, 2024 was completed by 10" April, 2024 on which date value of the stock available in godown was of % 4,50,000 at cost. Following are the details of transactions that took place between 31st March, 2024 and 10th April, 2024: (i) Goods sold to customers = 1,10,000. (ii) Sales return = 10,000. (iii) Purchases = 85,000 (Including Cash Purchases %…

6. (a) The following balances appeared in the Books of Mac Ltd. as on 31°:December, 2023: Amount (%) 80,000, 10% Preference shares of = 100 each, = 75 paid 60,00,000 up 2,00,00,000 2,00,000 Equity share of = 100 each fully paid up 6,50,000 Securities Premium 42,00,000 Capital Redemption Reserve 85,00,000 General Reserve Under the terms of their issue, the preference shares are redeemable on 318! March,2024 at a premium of 5%. In order to finance the redemption, the company makes…