(i) If Closing Stock appears in the Trial Balance then it does not enter in Trading Account. It is shown only in the Balance Sheet.

(ii) 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 principle.

(iii) Accounting Standards can override the statute.

(iv) Promissory Note is different from Bill of Exchange because the amount is paid by maker in case of former and by the acceptor in the later.

(v) All errors are rectified by means of journal entries.

(vi) Revaluation Account is also known as Profit and Loss Adjustment Account.

(i) Define accounting policy. What are the conditions under which a company can change its accounting policy?

(ii) Explain the following: (1) Cash Basis of Accounting

(ii) Explain the following: (2) Going Concern concept

(i) Purchased goods from Sonu for ₹ 1,50,000 at a trade discount of 10% plus CGST and SGST@ 6% each.

(ii) Sold goods to Mohit for ₹50,000 and charged CGST and SGST @ 5% each. Out of the amount due 40% is received by cheque immediately.

(iii) Goods costing₹25,000 withdrawn for personal use. Such Goods were purchased by paying CGST and SGST @ 6% each.

(iv) Machinery purchased from M/s Bright Industries for₹2,00,000 plus CGST and SGST @ 9% each. Paid ₹ 1,00,000 immediately by cheque and balance to be paid after two months.