Double Entry Book Keeping Ts Grewal (2016) Solutions for Class 11 Commerce Accountancy Chapter 1 Bases Of Accounting are provided here with simple step-by-step explanations. These solutions for Bases Of Accounting are extremely popular among class 11 Commerce students for Accountancy Bases Of Accounting Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal (2016) Book of class 11 Commerce Accountancy Chapter 1 are provided here for you for free. You will also love the ad-free experience on Meritnationâ€™s Double Entry Book Keeping Ts Grewal (2016) Solutions. All Double Entry Book Keeping Ts Grewal (2016) Solutions for class 11 Commerce Accountancy are prepared by experts and are 100% accurate.

#### Page No 5.7:

Calculation of Mohan’s income for the year 2015-2016 as per the Cash Basis of Accounting

 Particulars Amount (Rs) Revenue (i.e. Cash Sales) 90,000 Less: Expenses (70,000 – 30,000) 40,000 Income/Profit during the year 50,000

Thus, Income of Mohan for the year 2015-2016 is Rs 50,000.

Note: If cash basis of accounting is followed, then credit sales and outstanding expenses are not accounted.

#### Page No 5.7:

Calculation of Mohan’s income for the year 2015-2016 as per the Accrual Basis of Accounting

 Particulars Amount (Rs) Revenue (i.e. Cash Sales + Credit Sales) 1,50,000 Less: Total Expenses 70,000 Income/Profit during the year 80,000

Thus, Net Income of Mohan for the year 2015-2016 is Rs 80,000

#### Page No 5.8:

(i) Calculation of Naren’s income for the year 2015-2016 as per the Cash Basis of Accounting

 Particulars Amount (Rs) Revenue (i.e. Income Received) 2,40,000 Less: Expenses (i.e. Expenses paid + Expenses paid in advance) 2,00,000 Income/Profit during the year 40,000

Thus, Net Income of Naren for the year 2015-2016 is Rs 40,000.

(ii) Calculation of Naren’s income for the year 2015-2016 as per the Accrual Basis of Accounting

 Particulars Amount (Rs) Revenue  (i.e. Income Received + Income not yet received – Income received in advance) 2,37,000 Less: Expenses (i.e. Expenses paid + Expenses not yet paid) 1,90,000 Income/Profit during the year 47,000

Thus, Net Income of Naren for the year 2015-2016 is Rs 47,000.

#### Page No 5.8:

(i) Calculation of Mohan’s income for the year 2015-2016 as per the Cash Basis of Accounting

 Particulars Amount (Rs) Revenue (i.e. Income Received) 1,20,000 Less: Expenses (i.e. Expenses paid) 80,000 Income/Profit during the year 40,000

Thus, Net Income of Mohan for the year 2015-2016 is Rs 40,000.

(ii) Calculation of Mohan’s income for the year 2015-2016 as per the Accrual Basis of Accounting

 Particulars Amount (Rs) Revenue (i.e. Income Received + Income earned but not year received – Income Received in Advance) 1,17,000 Less: Expenses (i.e. Expenses paid + Outstanding Expenses – Expenses paid in advance) 70,000 Income/Profit during the year 47,000

Thus, Net Income of Mohan for the year 2015-2016 is Rs 47,000.

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