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 L& T Company last year. On 5th March 2019, the company has declared a dividend of Rs 50 per share. The income is earned but not yet collected in your account during this financial year. (10 Marks)

b. On 5th March 2019, Mehta Brothers received 100% advance for goods, to be supplied in the next month. The Cost of the goods was Rs50000. They usually sell the goods at 10% markup. (10 Marks)