(a) 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 the size of the business, nature and level of information, level of the person making the decision etc. (ii) While preparing the Income and Expenditure Account as per accrual concept, the income and expenditure is considered in the period in which actual receipts or actual payments are made. (iii) Profit sharing ratio and capital contribution ratio need not be same. (iv) Depreciation is not provided in the financial year when the entity incurs loss. (v) The concept that helps in keeping business affairs free from the influence of the personal affairs of the owner is known as the matching concept. (vi) A Company cannot issue equity shares at discount to general public.

(b) Explain the generally accepted valuation principles.

(c) Record the following transactions in the purchase book: 2nd December,2024Purchased from Gupta & Co. on credit 100 plates @ ₹150 per plate 500 small bowls @ ₹50 per bowl Less: Trade discount @10% Packing charges @ ₹2 per plate and ₹ 1 per bowl