Accounting Bases - Practice Question

This practice question is in respect of the tutorial already discussed. Click here for details/guide on how to go about the question.

Extract from the books of account of Problem Plc. shows the following for the year ended 31st December, 20r4

i.              Total cash received in respect of goods sold during the year ended 31 December, 20r4 amounted to ₦52,030,000

ii.             Total cost of all supplies received from vendors during the year amounted to ₦32,100,420

iii.            Salaries paid during the year amounted to ₦6,000,480

iv.           Cash payments made to suppliers for goods supplied and services rendered in respect of year 20r4 amounted to ₦10,000,000

v.            Sales for which payment is yet to be received in respect of year 20r4 amounted to ₦6,000,250

vi.           Unpaid salaries for year ended 31 December, 20r4 amounted to ₦103,000

vii.          Rent expenses for the year amounts to ₦1,200,000

Required

Prepare the income statement using

a.    Accrual basis

b.    Cash basis

 

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