During the financial year 2011-2012, Ashok had a cash sales of Rs. 5,00,000 and credit sales of Rs. 1,50,000. His expenses for the year were Rs. 2,50,000 out of which Rs. 50,000 were still to be paid. During the year , he received advance payment of Rs. 30,000 for sales to take place in May 2012.He also received consultancy fee relating to previous year Rs. 45,000 and paid expenses for the last year Rs.25,000.Find his income for the year 2011-12, if (a) he maintains his books of account on cash basis of accounting (b) he maintains his books of account on accrual basis of accounting
Answers
Answer:
Opening stock 30,000
Closing stock 25,000
Opening creditors 50,000
Closing debtors 75,000
Discount allowed by creditors 1,500
Discount allowed to customers 2,500
Cash paid to creditors 1,35,000
Bills payable accepted during the period 30,000
Bills receivable received during the period 75,000
Cash received from customers 2,20,000
Bill receivable dishonored 3,500
Purchases 2,95,000
Answer:
During the financial year 2011-2012, Ashok had a cash sales of Rs. 5,00,000 and credit sales of Rs. 1,50,000. His expenses for the year were Rs. 2,50,000 out of which Rs. 50,000 were still to be paid. During the year , he received advance payment of Rs. 30,000 for sales to take place in May 2012.He also received consultancy fee relating to previous year Rs. 45,000 and paid expenses for the last year Rs.25,000.Find his income for the year 2011-12, if (a) he maintains his books of account on cash basis of accounting (b) he maintains his books of account on accrual basis of accounting