State with reasons, whether the following statements are Ture or False: (i) If Closing Stock appears in the Trial Balance then it does not enter in…

(i) True: If closing stock appears in the trial balance then it is not entered in the trading account but it is shown only in the balance sheet because it has already been adjusted to purchase account. (ii) False: If the amount is posted in the wrong account or it is written on the wrong side of the account, it is called error of commission and not error of Principle. (iii) False: Accounting standards cannot override the statute. The standards are required to be framed within the ambit of prevailing statutes. (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: Errors not affecting the trial balance can be rectified by passing a rectification journal entry. While other errors that affect one account of trial balance cannot be rectified by passing journal entries. Totaling errors cannot be rectified by passing journal entries. (vi) True: Revaluation is also called as profit and loss adjustment account. It is used to record the gain/loss arising from the revaluation of assets and liabilities of a firm at the time of reconstitution.