During the financial year 2009-10,Mohan had cash sales of Rs 90,000 and credit sales of Rs 60,000 His expenses - Accountancy - Theory Base of Accounting

Question

During the financial year 2009-10,Mohan 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
Mohan's income for 2009-10 following the cash basis of
accounting

Jayati Jawa · Accepted Answer

Dear Student,
Mohan's income as per cash basis of accounting = 90,000 (Cash
Sales) - 40,000 (Expenses incurred) = Rs 50,000
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During the financial year 2009-10,Mohan 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 Mohan's income for 2009-10 following the cash basis of accounting