(a) State with reasons, whether the following statements are True or False: (i) Trade Discount is a reduction granted by a supplier from the list price of goods or services on business considerations for prompt payment. (ii) M/s. XYZ & Co. runs a cafe. They renovated some of the old cabins. Because of this renovation some space was made free and number of cabins was increased from 15 to 18. The total expenditure incurred was 30,000 and was treated as a revenue expenditure. (iii) Valuation of inventory, at cost or net realizable value, whichever less, is based on principle of Conservatism. (iv) In case of bill of exchange, the drawer and the payee may not be the same person but in case of a promissory note, the maker and the payee may be the same person. (v) A Partnership firm cannot own any Assets. (b) (vi) Since company has existence independent of its members, it continues to be in existence despite the death, insolvency or change of members. (6 x 2 = 12 Marks) Distinguish between Provision and Contingent Liability. (4 Marks) (c) X purchased a machinery on 1st January 2017 for 4,80,000 and spent * 20,000 on its installation. On July 1, 2017 another machinery costing 2,00,000 was purchased. On 1st July, 2018 the machinery purchased on 1st January, 2017 having become scrapped and was sold for 2,90,000 and on the same date fresh machinery was purchased for *5,00,000. Depreciation is provided annually on 31st December at the rate of 10% p.a. on written down value. Prepare Machinery account for the years 2017 and 2018.