CA Foundation
Paper 1 : 
Principles and Practice of Accounting

Answer 1:

(i) False: Prior Period Items should be separately disclosed in the current statement of profit and loss together with their nature and amount in a manner that their impact on current profit or loss can be perceived.

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(ii) False: The right hand side of the equation includes cash twice- once as a part of current assets and another separately. The basic accounting equation is Equity + Long Term Liabilities = Fixed Assets + Current Assets - Current Liabilities

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(iii) False: The sale value of the by product is credited to Manufacturing Account so as to reduce to that extent, the cost of manufacture of main product.

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(iv) True: Discount at the time of retirement of a bill is a gain for the drawee and loss for the drawer.

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(v) True: If a partner retires, his share of profit or loss will be shared by the other partners in their profit sharing ratio.

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(vi) False: Net income is determined by preparing income and expenditure in case of persons practicing vocation