Question

3) Following information is provided for Tarun Enterprises for the year
ended 31st March 2020:
Cash Sales for the year Rs. 2,00,000
Credit Sales for the year Rs. 1,00,000
Received Rs. 20,000 during current year for goods sold on credit last year. Total purchases during the year Rs. 1,50,000 ( out of it Rs. 20,000 is still to
be paid)
Expenses paid during the year for current year ( 2019-20) Rs. 20,000
Expenses paid during the year for previous year( 2018-19) Rs. 10,000
Expenses paid during the year for next year ( 2020-21) Rs. 5,000
Calculate Profit/ Loss if accounts are maintained on :
i) Cash Basis ii) Accrual Basi​

Answer 1

Answer:

separate companies. (Losses and amounts to be deducted indicated with a minus sign.) Equity, beginning of year Owner investments during the year Owner withdrawals during the year Net income (loss) for the year Equity, end of year $ $ CBS 0 $ 105,000 (99,000) 101,000 107,000 $ ABC 0 $ (54,000) 49.790 103.790 $ CNN 0 94,785 (9,000) (5,000) 80,785 $ NBC 0 215,346 (54,000) (46,000) 115,346

Explanation:

separate companies. (Losses and amounts to be deducted indicated with a minus sign.) Equity, beginning of year Owner investments during the year Owner withdrawals during the year Net income (loss) for the year Equity, end of year $ $ CBS 0 $ 105,000 (99,000) 101,000 107,000 $ ABC 0 $ (54,000) 49.790 103.790 $ CNN 0 94,785 (9,000) (5,000) 80,785 $ NBC 0 215,346 (54,000) (46,000) 115,346