Which is correct practice manual or study material???

Dear CACLUBITES,

I'm attaching a scan of the Practice Manual of the icai, page no: 13.5 to 13.7, question no: 6. 

Along with the question i'm also attaching the answer along. According to me the answer published in the practice manual is wrong.

Please also find a relevant part of the study material.

Please tell me wheather the answer published  in the practice manual is correct or not.

Regards

Sanyam Sultania