Accounting Standards for non -corporate entities in India are issued by the Central Government .

(a) False: Accounting Standards for non- corporate entities in India are issued by the Institute of Chartered Accountants of India (ICAI). (b) 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. (c) False: Debit balance as per cash book should be represented by credit or favourable balance in passbook. (d) 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. (e) True: In the early periods of useful life of a fixed assets, repairs and maintenance expenses are relatively low because the asset is new. Whereas in later periods, as the asset become old, repairs and maintenance expenses increase continuously. Under written down value method, depreciation charged is high in the initial period and reduces continuously in the later periods. Thus, depreciation and repair and maintenance expenses become more or less uniform throughout the useful life of the asset. (f) False: A promissory note cannot be made payable to bearer. It is payable to or to do the order of certain person. (g) False: Provision for Bad debts is debited to P&L A/c. In Balance Sheet it is shown as deduction from “Debtors”. (h) False: Even though Goodwill is intangible asset it can be valued in terms of money. It can be measured in terms of physical units. (i) False: It shall be disclosed as a current liability in the opening balance sheet. (j) False: Preference share holder can hold both Equity shares and Preference shares of the company. Any person can hold both kinds of shares. (k) True: According to Section 53 of the Companies Act,2013, a Company cannot issue shares at a discount except in the case of issue of sweat equity shares (issued to employees and directors).