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Paper-1 Principles and Practice of Accounting Module 1

This corrigendum outlines corrections to the Study Material for Foundation Paper 1: Accounting, April 2023 edition, detailing specific changes in illustrations and journal entries across various chapters. Key amendments include adjustments to amounts, narration, and answers in true/false statements, as well as clarifications in working notes. The document serves to ensure accuracy and clarity for students using the material.

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KUNJ BIHARI SINGH
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© © All Rights Reserved
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27 views849 pages

Paper-1 Principles and Practice of Accounting Module 1

This corrigendum outlines corrections to the Study Material for Foundation Paper 1: Accounting, April 2023 edition, detailing specific changes in illustrations and journal entries across various chapters. Key amendments include adjustments to amounts, narration, and answers in true/false statements, as well as clarifications in working notes. The document serves to ensure accuracy and clarity for students using the material.

Uploaded by

KUNJ BIHARI SINGH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Board of Studies

The Institute of Chartered Accountants of India

29th July,2024

-----------------------------------------------------------------------------------------------

CORRIGENDUM

Corrigendum to Study Material (April, 23 edition) of Foundation Paper 1:


Accounting – Printed copy

In the printed copy of the Study Material [April, 2023 Edition], students may note
the following corrections. The correction has been carried out in the Study material
hosted on the website:

S.No. Chapter Para no. Page Remarks


/question No.
no./
Illustration
no.

1. 2 (Unit Illustration 2.37 Point (iv) The amount of ` 20,000 to be replaced with ` 30,000.
1)
8
2. 2 (Unit Illustration 2.40 In the narration of Journal entry no 5,the amount ` 14,000 and
1) 9 `1,400 to be read as ` 28,000 and ` 2,800
3. 2 (Unit 2.41
Illustration Point (iii) the words “and 5% Cash discount.” to be ignored while
1) 10 solving the question.
4. 2 (Unit 2.42
Illustration Point (iii) the journal entry and working note to be read as
1) 10 Bank A/c Dr. 60,480
Cash A/c Dr. 20,160
Mukesh’s A/c (refer W. N.) Dr. 53,760
To Sales A/c 1,20,000
To Output CGST A/c 7,200
To Output SGST A/c 7,200
(Being goods sold to Mukesh at a trade discount of 20% and
received 60%, charged CGST and SGST @ 6% each)
Working Note: After allowing trade discount of ` 30,000 on `
1,50,000 = ` 1,20,000, 60% of the balance amount i.e. ` 1,34,400 (`
1,20,000 + 12% GST ` 14,400) is paid in cash and by cheque.
Board of Studies
The Institute of Chartered Accountants of India

Hence, the amount paid in cash and cheque = ` 1,34,400 × 60% = `


80,640.
Amount paid by cheque = ` 80,640 × 3/4 = ` 60,480
Amount paid in cash = ` 80,640 x ¼ = ` 20,160
Mukesh’s A/c = (` 1,20,000 + ` 14,400 – ` 60,480 – ` 20,160) = `
53,760
5. 2 (Unit True and 2.43 In True and False statement point 2 to be read as:
1) False Point “In the traditional approach, for an entity a debtor will be
2 receiver after sale of goods.”
6. 2 (Unit True and 2.46 In True and False statement Answer of Point 2 to be read as:
1) False Point False: In the traditional approach, a debtor will be giver since he
2 will be paying money for the sale of goods by the entity.
7. 2 (Unit 2.121
True and Answer to point 4 to be read as:
5) False True: Contra entry can be passed in a two-column cash book
which includes bank and cash columns.
8. 2 (Unit 2.121
True and Answer to point 2 to be read as:
5) False False: Two column cash book consists of two columns either
cash column & discount column or cash column & bank column.
9. 2 (Unit 2.157
Practical Answer to Practical Question 1 adj(vii) to be read as
6) Question 1 Bad Debts A/c (refer W.N 1) Dr 1,560
To Trade receivables A/c 1,560
Provision for Doubtful Debts A/c ( W.N.2)Dr 1,396
To Profit and Loss A/c 1,396
Working Note:
Board of Studies
The Institute of Chartered Accountants of India

(i) Balance of Trail Balance for


Computation of Provision for
Doubtful Debts
Trade receivables as per books 23,390
Deduction vide item (iv) 270 270
Bad Debts 1,560 1,830
21,560
(ii) Amount Charge to Profit & Loss on Account
of Provision for Doubtful Debts
Opening of Provision for Doubtful Debts 2,320
Less: Bed debts 1,560
760
Closing Balance of Provision for Doubtful 2,156
Debts
Charge to Profit and Loss A/c 1,396
10. 5 Multiple 5.37 The year 1st October,2021 to be read as 1st October,2022
Choice
Question
10
11. 6.16
6 Illustration Adjustment No (iv) to be read as:
4 Katrak’s acceptance to Patel for ` 5,000 was discharged by
endorsing Mody’s acceptance to Katrak for a similar amount.
12. 7 7.41
Illustration In Balance Sheet the amount to Inventories to be read as
7 13,00,000
13. 10 (Unit Illustration
10.78 The Journal entry at the end of the page to be read as :
3) 9
Memorandum Revaluation A/c Dr.
To Assets Accounts (with decrease in the value of individual
assets)
To Liabilities (with increase in the value of individual assets)
14. 10(Unit Illustration
10.150 The words in bold are to be added in between the illustration.
9
4) “Sundry Fixed Assets was revalued for
` 1,10,000. But B and C did not prefer to show such an
increase in assets in the balance sheet. Also they agreed to
bring necessary cash to discharge 50% of the A’s claim, to make
the bank balance ` 25,000 and to make their capital
proportionate.
15. 10(Unit Illustration
10.151 “Revaluation Profit” in working notes to be read as
9
4) “Memorandum Revaluation Profit”
Board of Studies
The Institute of Chartered Accountants of India

16. 11(Unit Illustration


11.106 The date 1-1-2019 to be read as 1-1-2022.
13
3)
17. 11 (Unit Multiple
11.112 The answer to Multiple Choice Question 7 is (a).
Choice
3)
Question

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