Question : Name the basis of accounting according to which income and expenditure account is prepared?
Option 1: cash basis
Option 2: accural basis
Option 3: profit basis
Option 4: future basis
Correct Answer: accural basis
Solution : On the basis of accrual basis accounting, income and expenditure account is prepared. Hence, the correct option is 2.
Question : On which basis of accounting, Receipts and Payment account is prepared in case of Non Profit Organisation?
Question : Receipts and Payments Account of a non-profit organisation is prepared on the basis of:
Question : Cash Flow statement is based on -
Question : Furniture as of 1st April, 2019—Rs. 2,20,000; Furniture (having book value as on 1st April, 2019—Rs. 20,000) sold at a gain (profit) of 20% on 31st December, 2019. Furniture purchased on 1st October, 2019 for Rs. 1,00,000; Charge depreciation @ 10% p.a.
Question : Income and Expenditure Account gives out :
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