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Vijay a consultant during the financial year 2012-13 earned 4,00,000 Rs. Out of which he received 3,50,000 Rs. He incurred an expense of 1,70,000 Rs out of which 40,000 Rs are outstanding. He also received consultancy fee relating to previous year 45,000 and also paid 20,000 Rs expense of last year . Determine his income for the year if he uses accrual basis of accounting?
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Vijay a consultant during the financial year 2012-13 earned 4,00,000 R...



Calculation of Income for the Year using Accrual Basis of Accounting:

Consultancy Fee Earned:
- Total Fee Earned: Rs. 4,00,000
- Received: Rs. 3,50,000
- Outstanding Fees: Rs. 50,000 (4,00,000 - 3,50,000)

Expenses Incurred:
- Total Expenses: Rs. 1,70,000
- Outstanding Expenses: Rs. 40,000
- Actual Expenses: Rs. 1,30,000 (1,70,000 - 40,000)

Consultancy Fee from Previous Year:
- Fee Received: Rs. 45,000

Expenses of Last Year:
- Amount Paid: Rs. 20,000

Calculation of Income for the Year:
- Income (Accrual Basis) = Total Fee Earned + Outstanding Fees - Actual Expenses + Fee from Previous Year - Expenses of Last Year
- Income = 4,00,000 + 50,000 - 1,30,000 + 45,000 - 20,000
- Income = Rs. 3,45,000
Therefore, Vijay's income for the financial year 2012-13, using the accrual basis of accounting, is Rs. 3,45,000.

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Vijay a consultant during the financial year 2012-13 earned 4,00,000 Rs. Out of which he received 3,50,000 Rs. He incurred an expense of 1,70,000 Rs out of which 40,000 Rs are outstanding. He also received consultancy fee relating to previous year 45,000 and also paid 20,000 Rs expense of last year . Determine his income for the year if he uses accrual basis of accounting?
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Vijay a consultant during the financial year 2012-13 earned 4,00,000 Rs. Out of which he received 3,50,000 Rs. He incurred an expense of 1,70,000 Rs out of which 40,000 Rs are outstanding. He also received consultancy fee relating to previous year 45,000 and also paid 20,000 Rs expense of last year . Determine his income for the year if he uses accrual basis of accounting? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Vijay a consultant during the financial year 2012-13 earned 4,00,000 Rs. Out of which he received 3,50,000 Rs. He incurred an expense of 1,70,000 Rs out of which 40,000 Rs are outstanding. He also received consultancy fee relating to previous year 45,000 and also paid 20,000 Rs expense of last year . Determine his income for the year if he uses accrual basis of accounting? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Vijay a consultant during the financial year 2012-13 earned 4,00,000 Rs. Out of which he received 3,50,000 Rs. He incurred an expense of 1,70,000 Rs out of which 40,000 Rs are outstanding. He also received consultancy fee relating to previous year 45,000 and also paid 20,000 Rs expense of last year . Determine his income for the year if he uses accrual basis of accounting?.
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