Question

From the following information, determine the profit earned or loss incurred according to 1.cash basis & 2 accrual basis of accounting. Cash sales rs. 7,00,000 credit sales rs. 4,00,000 outstanding expenses rs. 6000 prepaid rent rs. 4,500 total income received rs. 10,000 out of which income received in advance is rs. 2000 income earned but not received rs. 5000 cash purchases rs. 3,00,000 credit purchases rs. 1,00,000 expenses paid rs. 48000 electricity expenses rs. 15000.​

Answer 1

Answer:

Net Profit for the year Ended..

        Particular

          Amount

         Particular

         Amount

To Purchase a/c

Cash -400000

Credit-50000

450000

By Sales a/c

Cash-500000

Credit-25000

525000

To Wages Paid A/c

20000

 

 

To O/s Expenses A/c

10000

 

 

To Rent Paid A/c

           5000

+ O/s 2000

7000

 

 

To Depreciation on building A/c

10000

 

 

To loss on sale of fixed assets A/c

1000

 

 

To Net profit transferred A/c

27000

 

 

 

525000

 

525000

Answer 2

Refer the attachments...