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-total fees received during the year Rs. 4,80,000(including fees received during 2017-18 Rs. 40,000) -fees accrued for the year Rs. 70,000 -rent paid Rs. 1,20,000(including 60,000 for 2017-18 and 2,000 for 2019-20) -Salaries paid till February 2019 Rs. 2,20,000 Miscellaneous expenses Rs. 6,000 Calculate his net income for the financial year ending on 31st March 2019 under- (a) cash basis accounting (b) accrual basis accounting?
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-total fees received during the year Rs. 4,80,000(including fees recei...
The net income for the financial year ending on 31st March 2019 under cash basis accounting:
Under cash basis accounting, income and expenses are recognized when cash is received or paid. Therefore, the net income for the financial year ending on 31st March 2019 can be calculated as follows:
1. Total fees received during the year: Rs. 4,80,000
2. Less: Fees received during 2017-18: Rs. 40,000
3. Net fees received during the year: Rs. 4,40,000
4. Rent paid during the year: Rs. 1,20,000
5. Less: Rent paid for 2017-18: Rs. 60,000
6. Less: Rent paid for 2019-20: Rs. 2,000
7. Net rent paid during the year: Rs. 58,000
8. Salaries paid till February 2019: Rs. 2,20,000
9. Miscellaneous expenses: Rs. 6,000
10. Net income under cash basis accounting:
Total fees received during the year - Rent paid during the year - Salaries paid till February 2019 - Miscellaneous expenses
= Rs. 4,40,000 - Rs. 58,000 - Rs. 2,20,000 - Rs. 6,000
= Rs. 1,56,000
The net income for the financial year ending on 31st March 2019 under accrual basis accounting:
Under accrual basis accounting, income and expenses are recognized when they are earned or incurred, regardless of when the cash is received or paid. Therefore, the net income for the financial year ending on 31st March 2019 can be calculated as follows:
1. Total fees received during the year: Rs. 4,80,000
2. Less: Fees received during 2017-18: Rs. 40,000
3. Net fees earned during the year: Rs. 4,40,000
4. Fees accrued for the year: Rs. 70,000
5. Rent paid during the year: Rs. 1,20,000
6. Less: Rent paid for 2017-18: Rs. 60,000
7. Less: Rent paid for 2019-20: Rs. 2,000
8. Net rent paid during the year: Rs. 58,000
9. Salaries paid till February 2019: Rs. 2,20,000
10. Miscellaneous expenses: Rs. 6,000
11. Net income under accrual basis accounting:
Net fees earned during the year + Fees accrued for the year - Rent paid during the year - Salaries paid till February 2019 - Miscellaneous expenses
= Rs. 4,40,000 + Rs. 70,000 - Rs. 58,000 - Rs. 2,20,000 - Rs. 6,000
= Rs. 2,26,000
Therefore, the net income for the financial year ending on 31st March 2019 is Rs. 1,56,000 under cash basis accounting and Rs. 2,26,000 under accrual basis accounting.
Under cash basis accounting, income and expenses are recognized when cash is received or paid. Therefore, the net income for the financial year ending on 31st March 2019 can be calculated as follows:
1. Total fees received during the year: Rs. 4,80,000
2. Less: Fees received during 2017-18: Rs. 40,000
3. Net fees received during the year: Rs. 4,40,000
4. Rent paid during the year: Rs. 1,20,000
5. Less: Rent paid for 2017-18: Rs. 60,000
6. Less: Rent paid for 2019-20: Rs. 2,000
7. Net rent paid during the year: Rs. 58,000
8. Salaries paid till February 2019: Rs. 2,20,000
9. Miscellaneous expenses: Rs. 6,000
10. Net income under cash basis accounting:
Total fees received during the year - Rent paid during the year - Salaries paid till February 2019 - Miscellaneous expenses
= Rs. 4,40,000 - Rs. 58,000 - Rs. 2,20,000 - Rs. 6,000
= Rs. 1,56,000
The net income for the financial year ending on 31st March 2019 under accrual basis accounting:
Under accrual basis accounting, income and expenses are recognized when they are earned or incurred, regardless of when the cash is received or paid. Therefore, the net income for the financial year ending on 31st March 2019 can be calculated as follows:
1. Total fees received during the year: Rs. 4,80,000
2. Less: Fees received during 2017-18: Rs. 40,000
3. Net fees earned during the year: Rs. 4,40,000
4. Fees accrued for the year: Rs. 70,000
5. Rent paid during the year: Rs. 1,20,000
6. Less: Rent paid for 2017-18: Rs. 60,000
7. Less: Rent paid for 2019-20: Rs. 2,000
8. Net rent paid during the year: Rs. 58,000
9. Salaries paid till February 2019: Rs. 2,20,000
10. Miscellaneous expenses: Rs. 6,000
11. Net income under accrual basis accounting:
Net fees earned during the year + Fees accrued for the year - Rent paid during the year - Salaries paid till February 2019 - Miscellaneous expenses
= Rs. 4,40,000 + Rs. 70,000 - Rs. 58,000 - Rs. 2,20,000 - Rs. 6,000
= Rs. 2,26,000
Therefore, the net income for the financial year ending on 31st March 2019 is Rs. 1,56,000 under cash basis accounting and Rs. 2,26,000 under accrual basis accounting.
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-total fees received during the year Rs. 4,80,000(including fees received during 2017-18 Rs. 40,000) -fees accrued for the year Rs. 70,000 -rent paid Rs. 1,20,000(including 60,000 for 2017-18 and 2,000 for 2019-20) -Salaries paid till February 2019 Rs. 2,20,000 Miscellaneous expenses Rs. 6,000 Calculate his net income for the financial year ending on 31st March 2019 under- (a) cash basis accounting (b) accrual basis accounting?
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-total fees received during the year Rs. 4,80,000(including fees received during 2017-18 Rs. 40,000) -fees accrued for the year Rs. 70,000 -rent paid Rs. 1,20,000(including 60,000 for 2017-18 and 2,000 for 2019-20) -Salaries paid till February 2019 Rs. 2,20,000 Miscellaneous expenses Rs. 6,000 Calculate his net income for the financial year ending on 31st March 2019 under- (a) cash basis accounting (b) accrual basis accounting? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about -total fees received during the year Rs. 4,80,000(including fees received during 2017-18 Rs. 40,000) -fees accrued for the year Rs. 70,000 -rent paid Rs. 1,20,000(including 60,000 for 2017-18 and 2,000 for 2019-20) -Salaries paid till February 2019 Rs. 2,20,000 Miscellaneous expenses Rs. 6,000 Calculate his net income for the financial year ending on 31st March 2019 under- (a) cash basis accounting (b) accrual basis accounting? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for -total fees received during the year Rs. 4,80,000(including fees received during 2017-18 Rs. 40,000) -fees accrued for the year Rs. 70,000 -rent paid Rs. 1,20,000(including 60,000 for 2017-18 and 2,000 for 2019-20) -Salaries paid till February 2019 Rs. 2,20,000 Miscellaneous expenses Rs. 6,000 Calculate his net income for the financial year ending on 31st March 2019 under- (a) cash basis accounting (b) accrual basis accounting?.
-total fees received during the year Rs. 4,80,000(including fees received during 2017-18 Rs. 40,000) -fees accrued for the year Rs. 70,000 -rent paid Rs. 1,20,000(including 60,000 for 2017-18 and 2,000 for 2019-20) -Salaries paid till February 2019 Rs. 2,20,000 Miscellaneous expenses Rs. 6,000 Calculate his net income for the financial year ending on 31st March 2019 under- (a) cash basis accounting (b) accrual basis accounting? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about -total fees received during the year Rs. 4,80,000(including fees received during 2017-18 Rs. 40,000) -fees accrued for the year Rs. 70,000 -rent paid Rs. 1,20,000(including 60,000 for 2017-18 and 2,000 for 2019-20) -Salaries paid till February 2019 Rs. 2,20,000 Miscellaneous expenses Rs. 6,000 Calculate his net income for the financial year ending on 31st March 2019 under- (a) cash basis accounting (b) accrual basis accounting? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for -total fees received during the year Rs. 4,80,000(including fees received during 2017-18 Rs. 40,000) -fees accrued for the year Rs. 70,000 -rent paid Rs. 1,20,000(including 60,000 for 2017-18 and 2,000 for 2019-20) -Salaries paid till February 2019 Rs. 2,20,000 Miscellaneous expenses Rs. 6,000 Calculate his net income for the financial year ending on 31st March 2019 under- (a) cash basis accounting (b) accrual basis accounting?.
Solutions for -total fees received during the year Rs. 4,80,000(including fees received during 2017-18 Rs. 40,000) -fees accrued for the year Rs. 70,000 -rent paid Rs. 1,20,000(including 60,000 for 2017-18 and 2,000 for 2019-20) -Salaries paid till February 2019 Rs. 2,20,000 Miscellaneous expenses Rs. 6,000 Calculate his net income for the financial year ending on 31st March 2019 under- (a) cash basis accounting (b) accrual basis accounting? in English & in Hindi are available as part of our courses for Commerce.
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