Mr. Ram Mr Ramesh winning business and you are required to calculate is company net income using cash basis of accounting from the information given below 10 years rupees 6 lakh and produces rupees 3 lakh expense incurred in the year rupees 500000 out of which 20 150000 is still pending

Asked by sahilbajpai2001 | 11th Feb, 2020, 11:54: AM

Expert Answer:

Cash Basis of Accounting:
  • It is a system of accounting as per which the transactions are recorded in the books of accounts when cash is received or paid, that is, it is records revenue when received in cash and expenses are recorded when actually paid in cash.
  • The profit or loss for the business in an accounting period would be the difference between the revenue received in cash and expenses paid in cash.
  • It does not take into consideration any of the outstanding and prepaid incomes or expenses.
Complete solutions along with the detailed workings for all similar problems are provided on our website under the chaper Bases of Accounting

Answered by Surabhi Gawade | 11th Feb, 2020, 03:02: PM

Queries asked on Sunday & after 7pm from Monday to Saturday will be answered after 12pm the next working day.