Question

During the financial year 2018-19 mohan had cash sale of 90000 and credit sale sales of 60000 his expenses for the year were 70000 out of which 300000 is still to be paid find out mohandes income for the year 2018-19 for the cash basis of accounting

Answer 1

Answer:

income according to cash basis

= cash sale = 90000

expense paid in cash = 70000-30000

=40000

income = 90000-40000

=50000

Answer 2

Answer:

Mohan's income according to cash basis

Cash sale = 90000

Expanses paid in cash = 70000-30000

= 40000

Mohan's income = 90000-40000= 50000

so the mohan's income in 2018—19 is ₹50000