1. Discuss for question (a) and (b)

- Define and identify the type of Income / Expenses

- Treatment of the Income / Expenses in the Profit and Loss account, Impact of the Income / Expenses in the Balance Sheet

a. You purchased 10 shares of Bajaj Company last year. On 5th March 2019, the company has declared a dividend Rs 50 per share. The income is earned but not yet collected in your account during this financial year.

b. On 5th March 2019, Rajesh Brothers received 100% advance for goods, to be supplied in the next month. The Cost of the goods was Rs50000. They usually sells the goods at 10% mark up.