S1: Vouching is the examination of documentary evidence of transactions. R: Vouching ensures that transactions are authorized and properly recorded. Which statement(s) is/are correct?
Explanation:
Vouching is the primary audit procedure involving the inspection of vouchers (receipts, invoices) to verify the authenticity of transactions. It ensures transactions are authorized, accurate, and recorded. Both are correct.
S1: In the absence of a partnership deed, a partner is entitled to a salary for participating in management. S2: In the absence of a partnership deed, interest on partner's loan is allowed at 6% p.a. Which statement(s) is/are correct?
Explanation:
The Partnership Act 1932 does not allow any partner to claim a salary for management participation if the deed is silent. However, it does allow interest on a partner's loan at 6% p.a. S1 is incorrect, S2 is correct.
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