State with reasons, whether the following statements are true or false: (i) The debit notes issued are used to prepare sales return book . (ii) Sale…

(i) False: The debit notes issued are used to prepare purchases return book. (ii) False: Sale of office furniture should be credited to Furniture account since it is a capital receipt. (iii) False: It shall be disclosed as a current liability in the opening balance sheet. (iv) False: When closing inventory is overstated, net income for the accounting period will be overstated. (v) True: They are prepared on the basis of assumptions, conventions, concepts and personal judgements of the person who prepare them. (vi) False: In case of a public holiday, the due date of the bill falls on the preceding working day. (vii) False: Even though Goodwill is intangible asset it can be valued in terms of money. It can be measured in terms of physical units. (viii) True: Where in case of the trading activities for Non-Profit organization, the profit/loss from such activity is to be transferred to the Income and Expenditure Account at the time of consolidation. (ix) False: the firm will receive full value of sum assured of the joint life policy on the death of the partner (x) False: Even if the company incurs losses, it has to pay interest on debentures. Debenture being debts on the company & debenture holders are not concerned with the profit or loss of the company, the interest is to be paid at the rate fixed on it at the time of issue of debenture.