7. Ravleen gives following information about her income and expenses for the year ended 31st March, 2021:
Income received 2,40,000
Income received in advance (included in 2,40,000) 30,000
Income not yet received 24,000
Expenses paid 1,60,000
Expenses paid in advance (included in 1,60,000) 40,000
Expenses not yet paid 20,000
Determine her income if she adopts (a) Cash Basis of Accounting, and (b) Accrual Basis of Accounting
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Particulars As per Cash basis As per Accrual basis
Income
1.Income received 210000 210000
2.Income received in
Advance 30000 0
3.Accrued Income 0 24000
Sub Total A 240000 234000
Expenses
1 Expenses paid 120000 120000
2.Expenses paid in
Advance 40000 0
3.Accrued Expenses 0 20000
Sub Total B 160000 140000
Net Income (Expenses) 80000 94000
(A-B)
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