Cash Versus Accrual Accounting.

Earlier articles describe both the accrual concept and profit versus cash concept.

Append below is a simple test to understand the cash versus accrual accounting.

Jim Co is a consulting company which have the following revenue and expenses for the month of October 2008


The company earned $10,000 but received only $8,000 in cash

Expenses were as follows

(i)  Rent $2,000 which was paid

(ii) Wages expense:$1,600 of which only 3 /4 was paid

(iii) Utilities expense:$700 was paid

(iv) Repairs expenses:$500 was unpaid

(v)  Stationery expenses:$200 was unpaid

(vi) Miscellaneous expenses:$100 was paid




Accrual Accounting

Cash Accounting







Rent expense



Wages expense



Utilities expense



Repairs expense



Stationery expense



Miscellaneous expenses



Net Profit or (Loss)




Fill up the table based on cash and accrual accounting

[ Refer ANSWER ]


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