Business Laws and Business Correspondence and Reporting - June 2024

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

Receipts and Payments Account of Vandana Sports Club for the year ended 31st March, 2024 are as follows : Receipts and Payments Account Receipts * | Amount Payment Amount 69) (2) 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 Income 19,850] By Sundry Expenses 71,050 To…

(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*t March, 2024 was as follows : Balance Sheet as on 31:t March, 2024 Liabilities Amount |Assets Amount (®) 69) Capital Accounts : Building 3,80,000 Anu 2,80,000 | Machinery “1,483,000 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 |…

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