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The correct answer is Dishonoured .

Key Points

• By "Notary Public," we mean someone who records the minutes of dishonour on the dishonoured bill.
• The Negotiable Act permits writing on a paper that has been attached to a dishonoured bill, or partially on the dishonoured bill and partially on the paper.

Important Points

Noting: 

• If a promissory note or bill of exchange has been dishonoured through non-acceptance or non-payment, the holder may request that a notary public note the dishonour on the document itself, a paper that is attached to it, or partially on both.
• A notary public is tasked with representing a dishonoured bill of exchange to the drawee for acceptance or to the acceptor for payment, depending on the situation, when it is dishonoured by non-acceptance or non-payment.
• If the bill is dishonoured once more, the notary public makes a note of it on the bill or in a piece of paper that is enclosed. The process of doing so is known as noting.

Hence, it can be concluded that Noting of a bill is done when it is dishonoured.

The correct answer is All assessee

Key PointsSection 80GGA of Income Tax Act, 1961.

Section 80GGA is related with tax deductions on contributions made towards scientific research and rural development.

Correct answer is Financial accounting

Key Points

• Management accounting = Management accounting is that branch of accounting which provides the financial information and analysis to the internal management so that the informed decisions can be taken for the future growth of the business. Management accounting includes budgeting and forecasting, performance measurement, finding variances and decision making. Management accounting is important for effective decision making within the organization.
• Cost accounting = Cost accounting is that branch of accounting which involves recording, classifying and summarizing cost for determination of cost of various products or services. Cost accounting ensures to control and reduce the cost and furnish such information to the management so that managers can take informed decisions. Various methods of cost accounting are used like marginal costing, activity based costing, departmental costing, batch costing etc.
• Financial accounting = It is that branch of accounting which records the financial transactions, summarizes and communicate them to different users for decision making. Financial accounting is the basis of other accounting systems like management accounting and cost accounting. Therefore financial accounting method was first used because all other accounting  methods are based on this.

Key Points

Secretarial Audit:

• A compliance audit is a secretarial audit.
• It is a component of an organization's overall compliance management.
• It is a useful tool for corporate compliance management that aids in identifying noncompliance and implementing remedies.
• The Secretarial Audit makes a determination regarding whether the company, taking into account the size and operations of the organization, has adequate systems and procedures in place to monitor and ensure compliance with applicable rules, regulations, laws, and guidelines.
• Secretarial auditing assists in identifying non-compliance and carrying out corrective measures.
• It looks at how well the business follows ethical business principles.

Important Points

The process involved in Secretarial Audit

• To check compliance with the provisions of various laws and rules/ regulations/procedures, maintenance of books, records etc.,
• By an independent professional
• To make sure that the legal and procedural requirements are complied with
• Also followed the due process.
• It is essentially a mechanism to monitor compliance with the requirements of stated laws.

Hence, it can be concluded that a Secretarial audit is an effective tool for corporate compliance management.

The correct answer is Debtor Method.

Key Points

Branch Accounting:

• Branch accounting is an accounting system that offers bookkeeping strategies for a company's or business's branches that are established in various locations to increase coverage and sales from the enterprise.
• Each branch is treated as a distinct entity, and separate books of accounts are kept for each one of the branches separately.

Important PointsMethods of Branch Accounting

1. Debtors Method/Direct Method
2. Stock and Debtors Method
3. Final Accounts method
4. Wholesale Branches Method
5. Income Statement System

Direct Method/Debtors Method: 

• Under this method, the head office keeps separate branch accounts for each branch.
• It will be ready to determine whether the branch made a profit or lost money.
• The branch account is a nominal account.
• This system is sometimes referred to as the direct method of branch accounting.

Additional InformationFormat of Branch Account

Hence, it can be concluded that in branch accounting, the direct method is another name for Debtor Method.

The correct answer is Available Cash.

Key Points

• The balance sheet's primary objective is to show the company's financial situation.
• As a result, the balance sheet's assets and liabilities should be presented in a way that makes it easy to grasp the firm's financial situation.
• Assets and liabilities are listed on the balance sheet in a particular order to accomplish this.
• The marshalling of the assets and liabilities on the balance sheet is known.

Important PointsMethods of Marshalling of Balance Sheet

• Order of Permanency
• Order of Liquidity
• Mixed Order

Order of Liquidity:

• The current and fixed assets of an organisation are listed in the balance sheet using the order of liquidity method, based on how easily they may be turned into cash.
• According to how urgently they must be paid, liabilities are presented.
• The majority of solo proprietors and partnership firms employ this strategy.
• In case the assets are listed in order of liquidity most liquid assets are mentioned first like available Cash and less liquid assets are mentioned at last like building.

Hence, it can be concluded that in case the assets are listed in order of liquidity, available cash are shown first.

Additional InformationOrder of Permanency:

• This approach lists assets based on how permanent they are.
• Particularly, more permanent items are presented first, followed by less permanent assets.
• Similar to the order of permanence technique, the current liabilities are listed last and the fixed or long-term liabilities are displayed first.

Mixed Order: Liabilities are placed in accordance with the order of permanency, whereas assets are structured in accordance with the order of liquidity.

The correct answer is 234B and 234C.

Key Points

• Under the Income-tax Act, different types of interests are levied for various kinds of delays/defaults.
• Section 234B and 234C deals with non-payment or short payment of advance tax; and non-payment or short payment of individual instalment or instalments of advance tax (i.e., deferment of advance tax) respectively.

Important PointsSection 234B : Interest for default in payment of advance

• Interest under section 234B is levied in following two cases: When the taxpayer due advance tax but hasn't paid it, or
• When the amount of advance tax paid by the taxpayer is less than 90% of the assessed tax (meaning of assessed tax is discussed later).
• Rate of Interest: Interest rates Section 234B imposes interest of 1% per month or portion thereof for failure to pay advance tax. Simple interest is the nature of interest. To put it another way, the taxpayer is responsible for paying simple interest at a rate of 1% per month or fraction thereof for failure to pay advance tax.
• Amount liable for interest: The amount of unpaid advance tax is subject to interest under section 234B. Interest is charged on the amount by which advance tax is underpaid if there is a shortfall in payment. The following formula is used to calculate the unpaid/short paid advance tax:

Amount of unpaid/short paid advance tax= Assessed Tax - Advance tax(if any)

Section 234C:  Interest for default in payment of instalment(s) of advance tax

• Rate of Interest: Interest is charged under section 234C at 1% per month or fraction thereof for failure to pay any instalments of advance tax. Simple interest is the nature of interest. In other words, if an individual advance tax instalment is not paid in full or is paid late, the taxpayer is responsible for simple interest at the rate of 1% per month or fraction thereof.
• Period of levy of interest Interest: Under section 234C is levied for a period of 3 months, in case of short fall in payment of 1^st, 2^nd and 3^rd instalment and for 1 month, in case of short fall in payment of last instalment.
• Amount liable for interest Interest:  Under section 234C is levied on the short paid amount of instalment(s) of advance tax.

The correct answer is (i) only

Key Points

• The balance sheet should display assets and liabilities in either permanent order or liquidity order.
• This is referred to as balance sheet marshalling.
• The assets and liabilities are arranged according to how permanent they are in the business.

Important PointsMarshalling of Balance Sheet: 

• The balance sheet's primary objective is to display the company's financial situation.
• As a result, the balance sheet's assets and liabilities should be presented in a way that makes it easy to grasp the firm's financial situation.
• Assets and liabilities are listed on the balance sheet in a particular order to accomplish this.
• The marshalling of the assets and liabilities on the balance sheet is known.
• There are three methods of marshalling: i. Order of permanence, ii, Order of Liquidity and iii. Mixed Order.

Order of Permanency: 

• This approach lists assets based on how permanent they are.
• Particularly, more permanent assets are displayed first, followed by less permanent assets.
• Similar to the order of permanence method, the current liabilities are listed last, and the fixed or long-term liabilities are displayed first.

​Hence, it can be concluded that the correct answer is only (i).**

Additional Information

1. Order of Liquidity: The current and fixed assets of an organisation are listed in the balance sheet using the order of liquidity method, based on how easily they may be turned into cash. According to how urgently they must be paid, liabilities are presented. The majority of solo proprietors and partnership firms employ this strategy.
2. Mixed Order: Liabilities are placed in accordance with the order of permanency, whereas assets are structured in accordance with the order of liquidity.

Mistake Points The commission has marked the answer as Neither (i) nor (ii) but the correct answer should be only (i).

The correct answer is Interim auditing.

Key PointsAuditing - An official review and verification of a company's financial records is called an audit, or financial audit.

A company's financial statements must be accurate and compliant with legal requirements for them to be audited.

 Important Points

Interim auditing - 

• Before conducting any statutory audits, interim audits are conducted to ensure that transactions are recorded accurately and that the company is operating in a way that is compliant with the law.
• It is an audit carried out between two financial years,
• Its primary goals are the early detection of hazards and the prompt implementation of corrective actions.
• Thus, Interim auditing is generally conducted between two annual audit.

Additional InformationExternal auditing - The process of an external auditor, a qualified independent third party, independently evaluating the company's financial accounts, is known as external audit.

Standard auditing - The term "auditing standard" refers to the level of auditing excellence or quality established by the Tax Institute as a standard that auditors of public financial statements must accept and adhere to.

Final auditing - 

• An audit that is performed after the financial period has ended and the accounts are prepared is known as a final audit.
• It continues in a session until all of the audit work has been completed.
• It is sometimes referred to as an annual or recurring audit.

The correct answer is Intangible asset; contingent liability.

Key Points

• An intangible asset called goodwill is created whenever a buyer purchases an existing business organisation for more money than its actual value.
• A contingent liability is a prospective debt that might materialise based on how a future event plays out.

Important Points1. Goodwill: 

• An intangible asset connected to the acquisition of a company by another is goodwill.
• In particular, goodwill is documented when the purchase price exceeds the total of the fair values of all tangible and intangible assets acquired in the acquisition as well as the liabilities taken on throughout the process.
• Examples of goodwill include the value of a company's brand name, strong customer base, positive customer and employee interactions, and any patents or proprietary technology.

2. Contingent Liabilities:

• Liabilities classified as contingent may or may not require payment in the future. It is the responsibility of the auditor to ensure that all liabilities, known and unknown, have been entered into the books as of the balance sheet date and are properly displayed as such.
• As of today, a "bill discounted but not matured" is not a liability. However, if the bill has been paid late, it can become your responsibility. If a discounted bill is not honoured, we are responsible for paying the full amount to the bank where the bill was discounted. As a result, it is a contingent liability.

Hence, it can be concluded that the current classification for ‘goodwill’ and ‘bill discounted but not matured’, is Intangible asset, contingent liability respectively.