15 15 Marks 50 C Compulsory Case Study Total Marks SECTION A Qs 1 (1 marks each) Harbor. Corp had the following situations during the year. a. Inventory with a cost of Rs. 1,86,400 is reported at its market value of Rs. 2, 35,600. b. Owner of Harbor informs his accountant that he does not want to review accounting items less than 1% of revenues. c. A company receives Rs. 2,000 for a service to be performed and records it as service revenue d. Owner invests Rs. 8,00,000 into the business. He opens a checking account in the name of the company and transfers the money from his personal account. e. Revenues of Rs. 25,000 earned in the prior year recorded in the current year. Identify in each case the accounting principlelassumption followed/violated Qs 2 (2.5 marks each) Give reasons to state whether the following statements are true or false: (a) Profit cannot be computed properly unless depreciation is provided (b) Repairs to machinery are revenue expenditure Qs 3 (1 marks each) Meredith Snelson started Campus Pizzeria, Inc. on August 1. Snelson was the sole owne The following transactions took place in August. Shon t transactions on Accounting Equation for Pizzeria, nr fo 1. August 1, Snelson 2. Equinm