Question

During the financial year 2018-19 Ramesh earned RS 3,00,000. Out of which
he received RS 2,80,000. He incurred an expense of RS 80,000, out of which
60,000 paid. Find Ramesh's income for 2018-19 on cash basis of accounting .​

Answer 1

Explanation:

Total earned 300000

Received income 280000

so outstanding income 20000

Total Expenses 80000

Paid Expenses 60000

so outstanding Expenses 20000

Total income for the year

= received income+ outstanding income - paid expenses- outstanding Expenses

= 280000+20000-60000-20000

= 220000