Question

XYZ Ltd. has a revenue of Rs. 8,00,000 and it has provided for depreciation at
10% SLM method. It has cash expenses of R.2,00,000. The taxes are 50% p.a.
show the net earning on accounting approach basis and cash flow basis

Answer 1

XYZ Ltd. has a revenue of Rs. 8,00,000 and it has provided for depreciation at 10% SLM method. It has cash expenses of R.2,00,000. The taxes are 50% p.a. show the net earning on accounting approach basis and cash flow basis.

Answer 2

Revenue= 800000

Depreciation= 10% of revenue

                    = 10 X 800000 / 100

                    = 80000

=Revenue - Depreciation

= 800000 - 80000

= 720000

Cash Expenses = 200000

= Revenue - Expense

= 720000 - 200000

= 520000

Taxes = 50%

= 520000 X 50%

Net Earning = 260000