1, 2020, by contributing tk.25,000 of their cash investment funds within the trade. A caddy shack was developed for cash at a fetched of tk.8,000, and tk.800 was went through on tennis balls and tennis clubs. Tonu and Monu Khan, neighborhood tennis stars, opened the TM Sports Ground on September The Khans rented five sections of land of arrive at a fetched of tk.1,000 per month and paid the primary month’s lease. Amid the primary month, publicizing costs totaled tk.750, of which tk.150 was unpaid at September 31, and tk.400 was paid to individuals of the high-school tennis team for recovering tennis balls. All incomes from clients were stored within the company’s bank account. On September 15, Tonu and Monu pulled back a add up to of tk.1,000 in cash for individual living costs. A tk.100 utility bill was gotten on September 31 but was not paid. On September 31, the adjust within the company’s bank account was tk.18,900. Tonu and Monu thought they had a lovely great to begin with month of operations. But, their gauges of benefit extended from a loss of tk.6,100 to net profit of tk.2,450. 

Instructions: 

Answer the following questions- 

(a)How could the Khans have decided that the business operated at a deficit of tk.6,100? Was this a rational basis on which to get net income?

 (b)How could the Khans have decided that his business come to a net profit of tk.2,450?Was this a rational basis on which to get net income?

 (c)Unless formulating an income statement, calculate the real net income for September. Determine what was the revenue recognized in September?

Answer rating: 100% (QA)

aHow could the Khans have decided that the business operated at a deficit of tk6100 Was this a ratio... View the full answer