Statement 1: ‘AUG’ codes methionine and also act as initiation codon.

Statement 2: AUG codes for methionine only in prokaryotes but not in eukaryotes

Statement 1 is correct. In the genetic code, "AUG" codes for the amino acid methionine, and it also serves as the initiation codon to start the process of translation in protein synthesis. It signals the ribosome to begin the translation process, and methionine is typically the first amino acid incorporated into the growing polypeptide chain during protein synthesis.

Statement is not correct. . "AUG" codes for methionine as both the starting amino acid and an internal amino acid in the genetic code, and this is true for both prokaryotes (bacteria and archaea) and eukaryotes (organisms with a true nucleus). In both prokaryotes and eukaryotes, "AUG" can serve as the initiation codon to start translation, and it can also code for methionine at other positions within the protein.