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There are 2 students studying in the same class. The teacher has given them an assignment to analyze a situation & find out the profit. Student A follows cash system of accounting & Student B follows accrual basis of accounting. What shall be difference between the profits as calculated by both of them for the period ending 31st March 2017? Situation: Sales of the company during the year is Rs 5,00,000 out of which cash sales is Rs 4,00,000. The company has paid a rent in the month of January 2017 for 1 year Rs 30,000 per month. |
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Answer» There are 2 students studying in the same class. The teacher has given them an assignment to analyze a situation & find out the profit. Student A follows cash system of accounting & Student B follows accrual basis of accounting. What shall be difference between the profits as calculated by both of them for the period ending 31st March 2017? |
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