State with reasons whether the following statements are True or False: (i) Trade Discount is a reduction granted by a supplier from the list price…

(i) False: Trade Discount is a reduction granted by a supplier from the list price of goods or services on business considerations other than for prompt payment. (ii) False: Renovation of cabins increased the number of cabins. This has an effect on the future revenue generating capability of the business. Thus the renovation expense is capital expenditure in nature. (iii) 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. (iv) False: The drawer and payee may be same person in case of bill of exchange whereas in promissory note maker and payee can’t be same person. (v) False: Surviving partners may continue to carry on the business in case of partnership. (vi) True: As per Perpetual Existence company has existence independent of its members, it continues to be in existence despite the death, insolvency or change of members.