Taking the figures in Illustration 1, find out the net income according to Accrual Basis of Accounting.

Taking the figures in Illustration 1, find out the net income accordin

1.	Taking the figures in Illustration 1, find out the net income according to Accrual 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."),("<a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> <a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a> = Cash Sales (Rs. 3,90,000)+Credit Sales (Rs. 1,60,000)",,"5,50,000"),("Less : Total Expenses for the Year",,"2,70,000"),("Net Income",,ulbar(ul("2,80,000"))):}` <br/> Note : Rs. 80,000 expenses still to be paid belong to this year and hence are to be charged to the revenue of this year. Similarly, credit sales of Rs. 1,60,000 are taken in the year in which sales <a href="https://interviewquestions.tuteehub.com/tag/transaction-16213" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSACTION">TRANSACTION</a> is done.</body></html>

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Taking the figures in Illustration 1, find out the net income according to Accrual Basis of Accounting.

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