Question

Que. 13. Manoj, a consultant, during the financial year 2018-19 eamned Rs 2,00,000. Out of which he received
Rs. 1,75,000. He incurred an expenses for the year were Rs. 85.000, out of which Rs. 20,000 are outstanding
He also received consultancy fee relating to previous year Rs. 22.500 & also paid Rs. 10.000 expenses of last
year
You are required to determine his income for the year if
he follows Cash Basis of Accounting and (1) he follows Accrual Basis of Accounting and​

Answer 1

Answer:

for cash basis of accounting - 1,22,500₹

accrual basis - 1,15,000₹

Explanation:

for cash : 1.75L-65k(85-20)+22.5k-10k

for accrual(only current financial year) : 2L-85k

no last year exp and income in accrual basis..

all the best