Question

You purchased 10 shares of L& T Company last year. On 5th March 2019, the
company has declared a dividend Rs 50 per share. The income is earned but not yet
collected in your account during this financial year.

Answer 1

Treatment of the Income / Expenses in the Profit and Loss account, Impact of the

Income / Expenses in the Balance Sheet

a. You purchased 10 shares of L& T Company last year. On 5th March 2019, the

company has declared a dividend Rs 50 per share. The income is earned but not yet

collected in your account during this financial year. (5 Marks)

b. On 5th March 2019, Mehta Brothers received 100% advance for goods, to be supplied

in the next month. The Cost of the goods was Rs50000. They usually sells the goods at

10%