Question

A firm earns a revenue of Rs. 21000 and expenses to earn this revenue are Rs. 15000 calculate it's income

Answer 1

'Matching concept ' is one of the ofFundamental assumptions and has a significance in accounting.. It entails that expenses should be matched with the income of that accounting period inorder to obtain/ascertain the financial result of that period.....So for this purpose..we will match expenses with revenue of that period...

Given Revenue= 21000
Expenses = 15000

Income will be = revenue - expenses= 21000 - 15000 = 6000..

Answer 2

Answer:

6,000

Explanation:

Revenue=21,000

Expense=15,000

=Revenue-Expense

=21,000-15,000=6,000