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 of…

(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) True: The conservatism concept states that one shall not account for anticipated profits but shall provide all prospective losses. Valuing inventory at cost or net realisable value whichever is less, therefore is based on principle of conservatism. (iii) False: Amount spent for replacement of any worn- out part of a machine is revenue expense since it is part of its maintenance cost. (iv) True: All the receipts and payments whether of revenue or capital nature are included in Receipt and Payment account. (v) False: Legal heirs of a deceased partner are entitled to all the dues of deceased partner. (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.