During the financial year 2018-19, Ashok had cash sales of Rs. 3,90,000 and credit sales of Rs. 1,60,000. His expenses for the year were Rs. 2,70,000, outof which Rs. 80,000 is still to be paid. Find out Ashok's income for 2018-19 following the cash Basis of Accounting.

During the financial year 2018-19, Ashok had cash sales of Rs. 3,90,00

1.	During the financial year 2018-19, Ashok had cash sales of Rs. 3,90,000 and credit sales of Rs. 1,60,000. His expenses for the year were Rs. 2,70,000, outof which Rs. 80,000 is still to be paid. Find out Ashok's income for 2018-19 following the cash Basis of Accounting.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :`{:(,,"Rs."),("Revenues (inflow of cash, i.e., cash <a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a>)",,"3,90,000"),("Less : Expenses (<a href="https://interviewquestions.tuteehub.com/tag/outflow-1142710" style="font-weight:bold;" target="_blank" title="Click to know more about OUTFLOW">OUTFLOW</a> of cash)(Rs. 2,70,000-Rs. 80,000)",,"1,90,000"),("Net <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a>",,ulbar(ul("2,00,000"))):}` <br/> Note : Credit sales and outstanding expenses will not be considered under . Cash Basis of Accounting.</body></html>

Discussion

No Comment Found

Related InterviewSolutions

X started a businesss on 1st April , 2018 witha capitalof â‚¹50,000 anda loanof â‚¹25,000 takenfrom Y. During2018-19, hehad introduced additional capital â‚¹25,000 andhad withdrawn15,000 for personal use. On 31st March , 2019 his assets were â‚¹1,50,000. Findhis capital as on 31st March, 2019 and profitmadeor lossincurred duringtheyear 2018-19.
X started a businesss on 1st April , 2018 witha capitalof ₹50,000 anda loanof ₹25,000 takenfrom Y. During2018-19, hehad introduced additional capital ₹25,000 andhad withdrawn15,000 for personal use. On 31st March , 2019 his assets were ₹1,50,000. Findhis capital as on 31st March, 2019 and profitmadeor lossincurred duringtheyear 2018-19.
X Ltd. Gets a contract of ₹ 100 crore to build a Shopping-Mal to be completed in 3 years. The management of the company wants to ascertain profit or loss on this contract only when the contract is completed. Is the management justified?
X Ltd. Follows the Written Down Value Method of depreciating machinery year after year due to
X Ltd . Follows the Written Down value Method of depreciating machinery year after year due to
X hasfollowingassetsand liabilities as on 31st March, 2019. Determinehis capital. Cash â‚¹25,000,Bankâ‚¹ 47,500, Debtors â‚¹ 18,000, Creditors â‚¹ 22,000, Pant and Machiney â‚¹ 80,000, Bulidingâ‚¹2,00,000, Furniture â‚¹ 24,000, Bills Receivableâ‚¹ 56,500, Bills Payable â‚¹23,500.
X hasfollowingassetsand liabilities as on 31st March, 2019. Determinehis capital. Cash ₹25,000,Bank₹ 47,500, Debtors ₹ 18,000, Creditors ₹ 22,000, Pant and Machiney ₹ 80,000, Buliding₹2,00,000, Furniture ₹ 24,000, Bills Receivable₹ 56,500, Bills Payable ₹23,500.
X' commenced business on 1st April, 2013 with a capital of 6,00,000. On 31st March, 2014 his assets were worth 8,00,000 and liabilities 50,000. Find out his closing capital.
Write two adventages of accrual basis of accounting.
Write the following transactions in Debtor's Account , Creditor's Account and Cash Account : {:(,,,"₹"),(1., "Cash sales" ,, 50","000), (3., "Cash received from X" ,, 56","000), (5.,"Paid to Y" ,, 30","000):}:| {:(,,,"₹") , (2., "Sold goods to X on credit" ,, 80","000), (4., "Purchase goods from Y on credit" ,, 44","000), (6., "Cash purchases from Y" ,, 16","000):}

During the financial year 2018-19, Ashok had cash sales of Rs. 3,90,000 and credit sales of Rs. 1,60,000. His expenses for the year were Rs. 2,70,000, outof which Rs. 80,000 is still to be paid. Find out Ashok's income for 2018-19 following the cash Basis of Accounting.

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment