Question

In the financial year 2018-19, aman earned a total of rs6,70,000 out of which 4,70,000 was received in cash. the total expenses paid by him were 4,40,000 out of which 20,000 pertains to 2019-20. the expenses of 30,000 are still outstanding. determine aman's income for the year 2018-19 according to cash basis of accounting

Answer 1

Answer:

    Aman's earnings for the $2018–19$ financial year on a cash basis Income of the year $50,000$

Explanation:

    He paid $4,40,000$ in total expenses, of which $20,000$ are related to $2019–20$ . The $30,000$ in expenditures is still unpaid.

Income$+$ Pertains $_$$-$$_$ Expenses

$=$Income + Pertains $(4,70,000+ 20,000)$

$=4,90,000 - 4,40,000$

Aman's earnings for the $2018–19$  financial year On cash basis Income of the year

      $= 50,000$

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