“Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur”. This is followed as per which of the following accounting methods?
The Mercantile Basis, also known as the accrual basis, is an accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash is actually received or paid out. It recognizes revenue when it is earned, regardless of when the payment is received, and recognizes expenses when they are incurred, regardless of when the payment is made.
A and B enter into a partnership with their initial sum of Rs.30000 and Rs.48000 respectively. After 6 months, a third person C also joins them with his...
A invested Rs. X in a business. After four months B Joined him with Rs. 2X and A double his investment. If at the end of the years total profit i...
Raj and Simran invested Rs. 'Q' and Rs. 15,000 in a business. Raj invested the amount for '3z' months while Simran invested for '4z' months. If the rati...
Amit and Vipin together start a business with investment of Rs. 2000 and Rs. ‘x + 800’, respectively. If the profit earned after 5 years is ...
P, Q and R invested their money in the ratio 4 : 5 : 7 respectively. The total amount invested by them was Rs. 5,90,000 and the profit earned was 40% of...
Three friends, 'X', 'Y', and 'Z', invest money in the ratio 3:2:5 for 4 months, 6 months, and 8 months respectively. If they earn a total profit of Rs. ...
Rajiv, Sanju and Tanu started a business with the investment of Rs. (z-400), (z-1000) and (z+200) respectively. After four months, Rajiv decreased his i...
If the ratio of time periods of investment of A and B is 2:5, profit at the end of the year is Rs.140000 and A’s share in it is Rs.40000, then what is...
X and Y initiated a partnership, with investments of Rs. 5000 and Rs. 6000 respectively. Six months into the partnership, Z joined by contributing Rs. 4...
P and Q started a business by investing Rs.9000 and Rs.7500 respectively. After 7 months, Q increased his investment by a certain percentage such that a...