Double
Entry Book Keeping Ts Grewal 2021 for Class 11
Commerce
Accountancy
Chapter
4 - Bases Accounting
These solutions for Bases Accounting are very popular among Class 11 Commerce students for Accountancy
Double Entry Book Keeping Ts Grewal 2021 Solutions for Class 11 Commerce
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Page No
4.8:
Question
6: During the financial year 2020-21, Mohan had cash
sales of `90,000 and credit sales of
` 60,000. His expenses for
the year were ` 70,000 out of which ` 30,000 is still to be paid.
Find out Mohan's income for 2020-21 following the Cash Basis of Accounting.
Answer:
Cash sales = `90,000
Total Expenses = `70,000
Outstanding Expenses = `30,000
Cash Expenses = `70,000 - `30,000= `40,000
Mohan's income for 2020-21= `90,000- `40,000= `50,000
Answer: Mohan's income for 2020-21= `50,000
Page No
4.8:
Question 7: Taking the figures given in Q. 6, find out the net income according to Accrual Basis of
Accounting.
Answer:
Cash sales = `90,000
Credit Sales =`60,000
Total Sales =90,000 + 60,000 = `1,50,000
Total Expenses = `70,000
Mohan's income for 2020-21== `1,50,000 - `70,000= `80,000
Answer: Mohan's income for 2020-21= `80,000 (On the Accrual Basis)
Page No
4.8:
Question 8: Vijay, a consultant, during the financial year 2020-21 earned `4,00,000. Out of which he received `
3,50,000. He incurred an
expense of `
1,70,000, out of which `40,000 are outstanding.
He also received consultancy fee relating to previous year `45,000 and also paid ` 20,000 expenses of last year.
You are required to determine his income for the year if
(i) He follows Cash Basis of Accounting, and
(ii) He follows Accrual Basis of Accounting.
Answer:
(i)
He follows Cash Basis of Accounting:
Income received =3,50,000
Expenses Paid in Cash= 1,70,000 - 40,000=1,30,000
Income = Income received+ consultancy fee received – Expenses Actually Paid
Income= 3,50,000 + 45,000- (1,30,000+20,000)
Income
for the year = ` 2,45,000
(ii) He follows Accrual Basis of
Accounting:
Income = Earing during the year – Expenses Incurred for the year
Income= 4,00,000 - 1,70,000
Income=
` 2,30,000