Question

3. Calculate the interest expense for the financial year 2018-19, when books are maintained on : (i) Cash basis (ii) Mercantile basis Interest paid during 2018-19 * 26,000. Interest due but not paid on 31st March, 2019 was 2.600. Interest payable on 1st April, 2018 was 6,200. class11th
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Answer 1

Answer:

19,802.600

Explanation:

26000 - 6200 + 2.600 = 19,802.600

(Paid in 2018-19) - (due of 2017-18) + (unpaid due of 2018-19) = (Total int. exp. of 2018-19)

Answer 2

Explanation:

No, the owner is not correct because under the Accrual Concept , expense should be accounted at the time when it is incurred and not when it is