State with reasons, whether the following statements are True or Fales: (i) Money spent to reduce working expenses is revenue expenditure. (ii)…

(i) False: It may be reasonably presumed that money spent for reducing revenue expenditure would have generated long-term benefits to the entity. So, this is capital expenditure. (ii) False: Transactions regarding the purchase of fixed asset are not recorded in the purchase book, only the credit purchases of goods are recorded in it. Credit Purchase of fixed assets are recorded through Journal. (iii) False: A present financial obligation of an uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as Provision and not liability. (iv) False: Under the single-entry system of bookkeeping, generally cash book and personal accounts of creditors and debtors are maintained, and no Nominal ledger account is maintained. Nominal ledger Accounts are maintained in Double entry system of accounting. (v) False: Winding up of an LLP may be initiated by Tribunal if the LLP has failed to submit with the statements of accounts and solvency or the LLP annual returns for more than five consecutive financial years (within prescribed time) with the Registrar not three years. (vi) True: As per section 52 of the Companies Act,2013 the securities premium account may be applied to write off preliminary expenses of the company.