State with reasons, whether the following statements are True or False: (i) The materiality depends only upon the amount of the item and not upon…

(i) False: As per materiality principle, all the items having significant economic effect on the business of the enterprise should be disclosed in the financial statements. (ii) False: While preparing the Income and Expenditure Account as per accrual concept, the items of revenue nature pertaining to the current period of account are included and not the actual receipt and payments. (iii) True: Profit sharing can be different from that of capital introduced by each of the partner. It is not necessary that partner contributing more capital should have a higher profit-sharing ratio and vice versa. Profit Sharing ratio is determined by mutual agreement among partners. (iv) False: Depreciation is a charge against profit and not an appropriation of profit. Therefore, depreciation has to be provided for, even in case of loss in a financial year. (v) False: The concept that helps in keeping business affairs free from the influence of the personal affairs of the owner is called Business entity concept. Under matching concept all expenses matched with the revenue of that period is taken into consideration. (vi) 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). Thus, any issue of shares at discount shall be void.