Board of Studies

The Institute of Chartered Accountants of India

26th February, 2021

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CORRIGENDUM

Corrigendum to Study Material (October, 20 edition) of Foundation (new) Paper 1

Principles and Practice of Accounting – Printed copy

In the printed copy of the October, 20 edition of the Study Material, students may note the
following changes:
S.No. Chapter Para no. Page Remarks
/question No.
no./
Illustration
no.

1. 2. Para 4.5 2.64 In the “ Return Inward Book” the

narration in both the entries“ (returns
(Unit 4)
as per debit note no…..) “ should be
ignored.

2. Illustration 5 2.85 In illustration, under date column,

2. March 11 should be read as March 12
when Adit informed that Srijan’s
(Unit 5)
Cheque was dishonoured.

3. 2. Illustration 5 2.85 In solution to this illustration, “On 6th

March, Rs 6,200 received cheque from
(Unit 5) Srijan and endorsed cheque in favour
of Adit”- both these postings to come
under cash column of Cash book.

4. 2. Para 7.53 2.109 In the first para, in the the last line, the
words “and thus the profit for that year
(Unit 6) 2016” should be read as “and thus the
profit for that year 2021”..

5. 2. Practical 2.114 The first error given in the question to

Question 1 be read as “Purchase returns day book
(Unit 6) had been correctly entered and totalled
under Test
Your at Rs 6,160, but had been posted to
Knowledge the ledger” should be read as
“Purchase returns day book had been
correctly entered and totalled at Rs
 Board of Studies
The Institute of Chartered Accountants of India

6,160, but had not been posted to the

ledger”.
In error no. (v) the words “depreciated
to Rs 1,200 had not been sold” should
be read as “depreciated to Rs 1,200
had been sold.”

6. 5. Illustration 7 5.15 In illustration “obsolete was auctioned

for Rs. 38,600” should be read as “
obsolete was auctioned for Rs.
38,6000”
7. 5. Practical 5.27 In Depreciation Provision Account ( for
Question 1 2019), please read year 2004, 2005
2006 as year 2008, 2009,2010

8. 6. Illustration 1 6.10 In solution the journal entry dated

04/1/2020 should be read as
(Unit 1)
“Bank A/c Dr. 10,000
Discount Charges Dr. 200
To Bills Receivables A/c 10,200

9. 6. Illustration 4 6.66 In working notes“(b) Computation of

the Closing stock (100-10-8) “ should
(Unit 3) be read as “(b) Computation of the
Closing stock (100-10-80)”

10. 7. Practical 7.53 Interest received 72,500 should be

Question 1 read as interest received 7,250 in the
(Unit 1) given particulars extracted from books
under Test
Your of Mr. Ganguli.
Knowledge

11. 7. Practical 7.54 In the first sentence of the question, the

Question 2 date- 31st March, 2020 to be read as
(Unit 1) 31st March, 2019
under Test
Your
Knowledge

12. 7. Answer 3 7.77 Deprecation on Machinery amounting

under Test Rs. 3,000 to be taken in the
(Unit 2) Manufacturing account instead of Profit
Your
Knowledge and Loss account. In that case the cost
of manufactured goods transferred to
Trading A/c will be Rs. 8,08,000
instead of Rs. 8,05,000.
 Board of Studies
The Institute of Chartered Accountants of India

13. 9.
Under Additional Information:
Illustration 4 9.11
(b) “Outstanding Salaries and for the
year ended 31st March 2020” should
be read as
“Outstanding Salaries and Wages
amounting to Rs. 40,000 for the year
ended 31st March 2020”
(c) Depreciate Sports for the year
ended on 31st March 2020 should be
read as
Depreciate Sports equipment by
25% for the year ended on 31st March
2020.

14. 9. Illustration 7 9.13 In solution to this illustration, add

heading “Subscription accounts” total
of this account to be read as Rs.
4,74,500.

15. 9. Illustration 8 9.14 In Receipt and Payment Account “

Honorarium to Secretary and
Treasurer of 2015” should be read as
Honorarium to Secretary and
Treasurer of 2019”.

Director,
Board of Studies, ICAI