1. Discuss any two advantages and
disadvantages each of cash and accrual basis of accounting.
2. Roshan, a chartered accountant earned
Rs.12,00,000 during the financial year 2014-15. Out of which he received
Rs.10,50.000. He incurred an expense of Rs.5,10,000, out of which Rs.1,20,000
are outstanding. He also received his fees relating to previous year
Rs.1,35,000 and also paid Rs.60,000 expenses of last year. Find out Roshan’s
income for 2014-15 following the cash and accrual basis.
3.
A, during a
financial year 2007 made sales and earned income of Rs 10,00,000. It included
credit sales of Rs 3,00,000 and 1,00,000 received pertaining to the previous
accounting year. The expenses paid were Rs 2,00,000 out of which 50,000
pertains to previous years rent. However Rs 20,000 salary has not been paid of
the current financial year.
Calculate
the amount of profit earned as per:-
(a)
Cash basis of
accounting
(b)
Accrual basis
of accounting
4.
Ram, during a
financial year 2013 made sales of Rs 25, 00,000. It included credit sales of Rs
9, 00,000 and 5, 00,000 received as advance for an order received. The
purchases made were Rs 8, 00,000 out of which 3, 00,000 were credit purchases.
Of the other expenses incurred i.e. 70,000, 8,000 is paid as advance salaries.
Calculate
the amount of profit earned as per:-
(a)
Cash basis of
accounting
(b)
Accrual basis
of accounting.
5. Name the basis of accounting in which
outstanding and prepaid expenses are taken into consideration.
6. Name the basis of accounting which is
recognized under the Companies Act,1956.
7. Differentiate between cash and
accrual basis of accounting.
No comments:
Post a Comment