Advertisement
Question 1 Chapter 2 – Unimax Publications of Class 11
During the financial year 2019-20, Sumit had cash sales of Rs. 90,000 and credit sales of Rs. 60,000. His expenses for the year were Rs. 70,000 out of which Rs. 30,000 is still to be paid. Find out Sumit’s income for 2019-20 following the cash basis of accounting.
The solution of Question 1 Chapter 2 – Unimax Publications of Class 11
| Rs | |
| Revenues (Inflow of Cash i.e. Cash Sales) | 90,000 |
| Less: Expenses (Outflow of Cash) (70,000-30,000) | 40,000 |
| Net Income | 50,000 |
Note: Credit Sales and Outstanding expenses will not be considered under Cash basis of accounting.
Advertisement