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Question 2 Chapter 2 – Unimax Publications of Class 11
Taking the figures given in above Question, find out the net income according to Accrual Basis of Accounting.
The solution of Question 2 Chapter 2 – Unimax Publications of Class 11
| Total Sales | = Cash Sales + Credit Sales |
| = 90,000+60,000 | |
| = Rs. 1,50,000 |
| Rs | |
| Total Sales | 1,50,000 |
| Less: Total Expenses for the year | 70,000 |
| Net Income | 80,000 |
Note: Rs. 30,000 expenses still to be paid belong to this year and hence to be changed to revenue of this year. Similarly, credit sales of Rs. 60,000 are taken in the year in which sales transact is done.
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