state whether the following statements are true t or false f 619022

State whether the following statements are True or False

1. Balance Sheet is not an account but only a statement.
2. According to business entity concept, business is a separate identity for accounting purposes.
3. The final accounts of sole trader are governed by specific statue – Schedule VI of Companies Act, 1956.
4. Trading Account is prepared to know whether the business entity has earned gross profit or suffered gross loss.
5. Trading Account is prepared after the preparation of Profit and Loss Account.
6. If closing stock is given in the Trial Balance, it will be shown on the credit side of the Trading Account.
7. Gross Profit/Loss is shown in the Balance Sheet.
8. The nominal accounts are transferred to either Trading Account or Profit and Loss Account.
9. Profit and Loss Account is prepared to ascertain net profit or net loss of a firm for a specified accounting period.
10. Net profit increases the capital.
11. Accrued income means that amount which has been earned but yet due.
12. Profit and Loss Account deals with both direct expenses and indirect expenses.
13. Carriage inward and carriage outward – both are debited to Profit and Loss Account.
14. Charity is a direct expense and should be debited to Trading Account.
15. Manufacturing Account is prepared to ascertain the cost of the goods produced.
16. Manufacturing Account deals with finished goods only.
17. The Balance Sheet contains only personal and real accounts.
18. The Balance Sheet contains both opening and closing stock.
19. Putting together items of the same nature under the common heading is called “Marshalling.”
20. Contingent liability is not shown in the Balance Sheet.