Question

XYZ ltd. has a revenue of Rs. 800000 and it has provided for depreciation at 10% SLM method . It has cash expenses of Rs. 200000 . The taxes are 50% p.a. show the net earning on accounting approach basis and cash flow basis .

Answer 1

I DON'T KNOW WHAT I MEAN

very easy let me solve

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