AID18717: Discuss for question (a) and (b)

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AID18717: Discuss for question (a) and (b)

– Define and identify the type of Income / Expenses

– Treatment of the Income / Expenses in the Profit and Loss account, Impact of the Income / Expenses in the Balance Sheet

  1. You purchased 10 shares of L& T Company last year. On 5th March 2019, the company has declared a dividend Rs 50 per share. The income is earned but not yet collected in your account during this financial year.
  2. On 5th March 2019, Mehta Brothers received 100% advance for goods, to be supplied in the next month. The Cost of the goods was Rs. 50000. They usually sells the goods at 10% mark up.