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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