Question

During the accounting year 2017 18 Udit had total sales of ₹5,80,000 out of which cash sales were of ₹3,70,000.The total expenses for the year were ₹2,80,000 out of which ₹70,000 are still outstanding.Find his income in 2017 18 as per i.cash basis of accounting
ii.accrual basis of accounting

Answer 1

Answer:

a) cash basis of accounting

income = 370000-210000=160000

b) accrual basis of accounting

income = 580000-370000=210000