State with reasons, whether the following statements are true or false: (i) A claim that an enterprise is pursuing through legal process, where the…

(i) False: A claim that an enterprise is pursuing through legal process, where the outcome is uncertain, is a contingent asset. (ii) True: Cash transactions are straightaway recorded in the Cash Book and on the basis of such a record, ledger accounts are prepared. Therefore, the Cash Book is a subsidiary book. But the Cash Book itself serves as the cash account and the bank account; the balances are entered in the trial balance directly. The Cash Book therefore, is part of the ledger also. Hence, it has also to be treated as a principal book. The Cash Book is thus both a subsidiary book and a principal book. (iii) False: Warehousing costs related to finished goods are expensed when incurred and are not included in inventory costs unless storage is incurred for getting the inventory ready for sale i.e. until and unless storage is required as a part of process of production of inventory like in case of wine. (iv) True: In case of the promissory note, it is generally the maker who makes the payment, but in case of the bill of exchange, the person accepting the bill shall be liable to make the payment to the holder of the bill. (v) False: The business of the partnership firm can be carried on by all the partners or by any one of them acting for all. (vi) False: Debenture interest is payable before the payment of any dividend on shares.