Principles and Practice of Accounting - September 2026

1. (a) State with reasons, whether the following statements are True or False : 6x2=12 (i) An enterprise selecting FIFO or Weighted average method ete. for valuation of inventory is not a selection of accounting policy. (ii) Ifan amount is posted in the wrong account or it is written on the wrong side or the totals are wrong ot a wrong balance is struck, it will be a case of “Error of principle”. (iii) Discount column of cash book does…

(a) Monu Singh is a cloth merchant. He follows the practice of paying creditors for goods purchased through his Bank account and making payment in cash on all nominal accounts. Monu Singh had not kept his books on the double entry principles nor had he balanced his two-column cash book. However, the following information has been extracted from his accounting records : Particulars On 1* April, 2025 | On 31 March, 2026 (in 2) (in ®) Cash in Hand 300…

(a) Attempt any ONE of the two parts i.e. either (i) or (ii) 10 (i) Smt. Rajlaxmi is running a small grocery store, on 31° March, 2026, the bank pass book of Smt. Rajlaxmi oo showed a balance of = 1,60,000 to her credit while balance as per cash book was % 1,31,500. On scrutiny of the two books, she ascertained the following causes of difference: (1) She has issued cheques amounting to = 90,000 out of which only =…