Board of Studies

The Institute of Chartered Accountants of India

30th Sep, 2022

-----------------------------------------------------------------------------------------------

CORRIGENDUM

Corrigendum to Study Material (September, 21 edition) of Foundation Paper 1:

Principles and Practice of Accounting – Printed copy

In the printed copy of the September, 21 edition of the Study Material, students may note the
following changes:
S.No. Chapter Para no. Page No. Remarks
/question no./
Illustration no.

1. 1 1.76 and The following text in the heading

1.78 change in accounting policies to be
(Unit 6)
ignored
“If depreciation method is changed from
straight line method to written down
value method.”
2.29
2. 2 (Unit True/False The statement of True/False is to be
1) read as
(2)
“ False: In the traditional approach , a
debtor becomes giver.”
3. True/False
2.91 The Answers of True and False No .2 to
2 (Unit be read as
(2)
5)
“True: Two Column cash book consists
of two columns either cash column and
discount column or cash Column and
Bank Column.”
4. 3
Practical Point (vii) to be read as
3.32
Question 1 “Bank pass-book showed a debit
balance of Rs. 3,82,000 on 31st
December,2019 “
5 5.11 Working Note (3) to be read as
5. Illustration 3
Depreciation for 2019
5
(10,00,000-1,20,000)x55= Rs.80,000
 Board of Studies
The Institute of Chartered Accountants of India

6. 6 Practical 6.81 In Bills Payable A/c the date to be read

as Mar. 5 instead of Mar. 4
Question 2

7. 6.103 In True /False 5 the word “sudden

6 True and False
holiday” to be replaced with “Sunday”.
(5) 6.105 In Answers also the words “considered
as sudden holiday” to be replaced with
Sunday.
Journal entry in the books of Bhavika on
8. 6
Illustration 3 6.12
Mar. 1,2020 to be read as
Bills Payable A/c Dr. 5,00,000
To Rebate Income A/c 5,000
To Bank 4,95,000

9. Example, 6.111,
6 (Unit In these questions, it is assumed that 1
Illustration 4, 6.113,120
5) year =365 days
Practical
Question 1
10. 7 (Unit Illustration 13 7.45
The part (iv) Proposed Dividend in this
1) question to be ignored.

11. 8 Example 8.7 The journal entry in the example to be

read as:
C’s Current A/c Dr. 15,000
To A’s Current A/c 12,000
To B’s Current A/c 3,000
12. 8.20 The last 2nd line of Illustration 9 to be
8 (Unit 1)
Illustration 9 read as :
The profit of the firm for the year ended
31st March 2020, before charging
interest on capital amounted to Rs.
4,00,000. You are required to prepare
Profit and Loss appropriation Account
and partners’ capital Accounts.
 Board of Studies
The Institute of Chartered Accountants of India

Chapter 8 Partnership Accounts (pg 8.20-8.21)

Solution of Illustration 9 “ Profit and Loss Appropriation A/c” and Partners’ Capital A/c to be
read as:
In the Books of Aarti, Bharti and Criti
Profit and Loss Appropriation A/c for the Year ended 31st March, 2020
Particulars Rs. Particulars Rs.
To salary to Criti 1,80,000 By Net Profit 4,00,000
To Interest on capital
Aarti 36,000
Bharti 60,000
Criti 24,000 1,20,000
To Net Profit transferred to
Aarti 30,000
Bharti 40,000
Criti 30,000 1,00,000
4,00,000 4,00,000

Partners’ Capital Accounts

Particulars Aarti Bharti Criti Particulars Aarti Bharti Criti
By Balance b/d 3,00,000 5,00,000 2,00,000
By Interest on
Capital 36,000 60,000 24,000
To Drawings 1,20,000 By Profit and loss 30,000 40,000 30,000
Appropiation
A/c

To Balance c/d 3,66,000 4,80,000 2,54,000

3,66,000 6,00,000 2,54,000 3,66,000 6,00,000 2,54,000

Director,
Board of Studies, ICAI

Last updated on 11th November, 2022