Question

During the financial year 2012-2013 Atul had cash sales Rs.80000 and credit sales of Rs.50000.His expenses for the year were Rs. 40000 out of which Rs.10000 is still to be paid. Find out Atul’s income for 2012-2013 following the accural basis of accounting

Answer 1

Answer:

No profit / No loss

Explanation:

Expenses of Rs.10,000 is still to be paid and hence it should be deducted from Rs.40,000 and shown separately in balance sheet liability side.

So,

80000 - {50000 + (40000 - 10000)} = 0.