state whether the following statements are true or false1 profit prior to incorporat 618297

State whether the following statements are True or False
1.Profit prior to incorporation forms part of P & L A/c.
2.Capital profit is not utilized for payment of dividend to shareholders.
3.Unutilized part of capital reserve appears on the assets side of the balance sheet.
4.Capital loss should be shown on the assets side of the balance sheet.
5.Capital loss may also be treated as Goodwill.
6.The date of Certificate of Commencement of business is not taken into account for ascertaining prior incorporation profit.7. Basis of apportionment of stationery expenses is sales ratio.
8.Gross profit is apportioned on the basis of sales ratio.
9.Basis of apportionment of “bad debts” is time ratio.
10.Director’s remuneration is not at all connected with pre-incorporation period.
11.Basis of apportionment of “insurance premium” is sales ratio.
12.Vendor’s salary is to be apportioned on the basis of adjusted time ratio.
13.Debenture interest is wholly allocated to post-incorporation period.
14.Formation expenses written off shall be allocated only to pre-incorporation period. Profit prior to incorporation is always to be adjusted against Goodwill.