Roshan,a Chartered Accountant earned Rs.12,00,000 during the financial year 2015-2016,out of which he received Rs.10,50,000.He incurred expenses of Rs.5,10,000,out of which Rs.1,20,000 are outstanding.He also received his fees relating to previous year Rs.1,35,000 and also paid Rs.60,000 due on expenses of last year.Find out Roshan's income for 2015-2016 following the cash basis and accrual basis of accounting.

Open in App

Solution

Cash Basis of Accounting=10,50,000+1,35,000-3,90,000

(5,10,000-1,20,000)-60,000

=Rs.7,35,000

Accrual Basis of Accounting=12,00,000-5,10,000=Rs.6,90,000

Suggest Corrections

Similar questions

During the financial year,Rajan had cash sales of Rs.4,50,000 and credit sales of Rs.3,00,000.Expenses incurred for the year were Rs.3,50,000 out of which Rs.1,50,000 are still to be paid.

Find out Rajan's income following

(i) Cash Basis of Accounting

(ii) Accrual Basis of Accounting.

Q. An institution received Rs. 1,80,000 as rent during the year 2016-2017 which includes Rs. 36,000 received in advance for the year 2017-2018.Outstanding rent at the end of the years 2015-2016 and 2016-2017 were Rs. 24,000 and Rs. 28,000 respectively. Amount of rent to be shown in Income and Expenditure Account for the year 2016-2017 will be ____________.

From the following particulars, prepare Income and Expenditure account:

Details	Amount Rs
Fees collected, including Rs 80,000 on account of the previous year	5,20,000
Fees for the year outstanding	30,000
Salary paid , including Rs 5,000 on account of the previous year	68,000
Salary outstanding at the end of the year	3,000
Entertainment expenses	8,000
Tournament expenses	25,000
Meeting Expenses	18,000
Traveling Expenses	7,000
Purchase of Books and Periodicals, including Rs 31,000 for purchase of Books	40,000
Rent	15,000
Postage, telegrams and telephones	6,000
Printing and Stationery	18,000
Donations received	25,000

Raja started a business on 1st April 2015 with a capital of Rs. 1,00,000 and a loan of Rs. 50,000 borrowed from Ram. During 2015-16, he had introduced additional capital of Rs. 50,000 and had withdrawn Rs. 30,000 for personal use. On 31st March 2016, his assets were Rs. 3,00,000. Find out his capital as of 31st March 2016 and profit made or loss incurred during the year 2015-16.

Join BYJU'S Learning Program

Cash Basis of Accounting=10,50,000+1,35,000-3,90,000 (5,10,000-1,20,000)-60,000 =Rs.7,35,000 Accrual Basis of Accounting=12,00,000-5,10,000=Rs.6,90,000

Cash Basis of Accounting=10,50,000+1,35,000-3,90,000

(5,10,000-1,20,000)-60,000

=Rs.7,35,000

Accrual Basis of Accounting=12,00,000-5,10,000=Rs.6,90,000