Question

During the financial year 2018-19, Mohan had cash sales of ₹90,000 and

credit sales of ₹60,000. His expenses for the year were ₹70,000 out of

which₹30,000 is still to be paid. Find out Mohan’s income for 2018-19

following I) cash basis of accounting ii) accrual basis of accounting. ​

Answer 1

Income=Revenue -Expenses

=90000-40000

=50‚000 Ans