Question

dr pk Srinivasan started his profession as a medical practitioner in 1 01 2012 his income and expenses ended on 31st December 2021 are as follows fees received in cash 35100,rent of chamber paid 10800, rent of chamber paid in advanced 800, fees accrued but not received 2000,salary of compounder paid 5400,salary of compounder outstanding 500 Now ascertain the net income in 1 cash basis and 2 Acruel basis ​

Answer 1

Answer:

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Answer 2

Given:

Dr PK Srinivasan started his profession as a medical practitioner on 1 01 2012 his income and expenses ended on 31st December 2021 are as follows fees received in cash 35100, rent of chamber paid 10800, rent of chamber paid in advanced 800, fees accrued but not received 2000, the salary of compounder paid 5400, the salary of compounder outstanding 500

To Find:

Now ascertain the net income on

1) cash basis and 2) accrual basis ​

Solution:

(1) cash basis

Fees received                            35100

less: rent of chamber paid        10800

salary of compounder                5400

Net income                                 18900

Hence, the net income on a cash basis is 18900.

(2) accrual basis

fees received                             35100

rent of chamber                         10800

less: rent paid in advance 800

fees accrued not received         2000

salary of compounder       5400

add: outstanding salary     500

                                                    5900

net income                                17200

Hence, the net income on an accrual basis is 17200.