T.S. Grewal Class 11 Chapter 4 Q.2 - Income on Accrual Basis of Accounting (Mohan)

Question 2 Taking the figures given in Q.1, find out the net income according to Accrual Basis of Accounting. Given: Cash sales ₹90,000; Credit sales ₹60,000; Total expenses ₹70,000 (of which ₹30,000 outstanding). Key Concept Under Accrual Basis of Accounting, all revenue earned (whether received or not) and all expenses incurred (whether paid or not) during the year are recognised. Solution Cash Sales₹90,000 Add: Credit Sales (earned, though not yet received)+&

T.S. Grewal Class 11 Chapter 4 Q.3 - Cash Basis vs Accrual Basis Income (Shiva)

Question 3 In the financial year 2024-25, Shiva earned total revenue of ₹3,45,000, out of which ₹2,35,000 was received. Total expenses paid by him were ₹2,20,000, out of which ₹10,000 relate to 2025-26 (prepaid). Expenses of ₹15,000 are still outstanding. Ascertain Shiva’s income for 2024-25 as per: Cash Basis of Accounting Accrual Basis of Accounting Solution (i) Cash Basis of Accounting Only cash received and cash paid are considered. Unpaid and unreceiv

T.S. Grewal Class 11 Chapter 4 Q.4 - Cash Basis vs Accrual Basis Income (Naren)

Question 4 Naren gave the following information about his income and expenses for the year ended 31st March, 2025: ParticularsAmount (₹) Expenses paid1,80,000 Expenses paid in advance (not included above)20,000 Expenses not yet paid (outstanding)10,000 Income received2,40,000 Income received in advance (included in above)15,000 Income not yet received (accrued income)12,000 Find the net income or profit of Naren if he adopts (i) Cash Basis of Accounting, and (ii) Accrual Basis of Accou

T.S. Grewal Class 11 Chapter 4 Q.5 - Cash Basis vs Accrual Basis Income (Pawan)

Question 5 Pawan gives the following information about his income and expenses for the year ended 31st March, 2025: ExpensesAmount (₹)IncomeAmount (₹) Expenses paid80,000Income received1,20,000 Expenses paid in advance20,000Income received in advance15,000 Outstanding expenses10,000Income earned but not received12,000 Compute the net income of Pawan if he adopts (i) Cash Basis of Accounting; and (ii) Accrual Basis of Accounting. Solution (i) Cash Basis of Accounting Only actual

T.S. Grewal Class 11 Chapter 4 Q.2 - Income on Accrual Basis of Accounting (Mohan)

Question 2 Taking the figures given in Q.1, find out the net income according to Accrual Basis of Accounting. Given: Cash sales ₹90,000; Credit sales ₹60,000; Total expenses ₹70,000 (of which ₹30,000 outstanding). Key Concept Under Accrual Basis of Accounting, all revenue earned (whether received or not) and all expenses incurred (whether paid or not) during the year are recognised. Solution Cash Sales₹90,000 Add: Credit Sales (earned, though not yet received)+&

T.S. Grewal Class 11 Chapter 4 Q.3 - Cash Basis vs Accrual Basis Income (Shiva)

Question 3 In the financial year 2024-25, Shiva earned total revenue of ₹3,45,000, out of which ₹2,35,000 was received. Total expenses paid by him were ₹2,20,000, out of which ₹10,000 relate to 2025-26 (prepaid). Expenses of ₹15,000 are still outstanding. Ascertain Shiva’s income for 2024-25 as per: Cash Basis of Accounting Accrual Basis of Accounting Solution (i) Cash Basis of Accounting Only cash received and cash paid are considered. Unpaid and unreceiv

T.S. Grewal Class 11 Chapter 4 Q.4 - Cash Basis vs Accrual Basis Income (Naren)

Question 4 Naren gave the following information about his income and expenses for the year ended 31st March, 2025: ParticularsAmount (₹) Expenses paid1,80,000 Expenses paid in advance (not included above)20,000 Expenses not yet paid (outstanding)10,000 Income received2,40,000 Income received in advance (included in above)15,000 Income not yet received (accrued income)12,000 Find the net income or profit of Naren if he adopts (i) Cash Basis of Accounting, and (ii) Accrual Basis of Accou

T.S. Grewal Class 11 Chapter 4 Q.5 - Cash Basis vs Accrual Basis Income (Pawan)

Question 5 Pawan gives the following information about his income and expenses for the year ended 31st March, 2025: ExpensesAmount (₹)IncomeAmount (₹) Expenses paid80,000Income received1,20,000 Expenses paid in advance20,000Income received in advance15,000 Outstanding expenses10,000Income earned but not received12,000 Compute the net income of Pawan if he adopts (i) Cash Basis of Accounting; and (ii) Accrual Basis of Accounting. Solution (i) Cash Basis of Accounting Only actual

T.S. Grewal Double Entry Book Keeping Class 11 - 2025-2026 Solutions Chapter 4 - Bases of Accounting – Detailed Q&A

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Get complete step-by-step solutions for T.S. Grewal Double Entry Book Keeping Class 11 - 2025-2026 - Chapter 4 - Bases of Accounting. Study double-entry system details, practice timed problems, and verify answers directly.

💡 Double Entry Accounting Principles

Accounting Equation: Assets = Liabilities + Owner's Equity.
Dual Aspect Concept: Every transaction has a double effect (debit and credit).
Going Concern: Assumes the business will continue operations indefinitely.

Topics & Questions Solved:

Q1. T.S. Grewal Class 11 Chapter 4 Q.1 - Income on Cas...
Q2. T.S. Grewal Class 11 Chapter 4 Q.2 - Income on Acc...
Q3. T.S. Grewal Class 11 Chapter 4 Q.3 - Cash Basis vs...
Q4. T.S. Grewal Class 11 Chapter 4 Q.4 - Cash Basis vs...
Q5. T.S. Grewal Class 11 Chapter 4 Q.5 - Cash Basis vs...

T.S. Grewal Class 11 Chapter 4 Q.1 - Income on Cash Basis of Accounting (Mohan)

Question 1

During the financial year ended 31st March, 2025, Mohan had cash sales of ₹90,000 and credit sales of ₹60,000. His expenses for the year were ₹70,000 out of which ₹30,000 is still to be paid.

Find out Mohan’s income for the year following the Cash Basis of Accounting.

Key Concept

Under Cash Basis of Accounting, only actual cash received and cash paid during the year are considered. Credit sales and outstanding (unpaid) expenses are ignored.

Solution

Cash Sales (Revenue actually received)	₹90,000
Credit Sales	Ignored (not received in cash)
Total Expenses	₹70,000
Less: Outstanding Expenses (not yet paid)	−₹30,000
Cash Expenses paid during the year	₹40,000

Mohan’s Income (Cash Basis) = Cash Sales − Cash Expenses

Income	= ₹90,000 − ₹40,000
	= ₹50,000

Mohan’s income for the year (Cash Basis) = ₹50,000

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T.S. Grewal Double Entry Book Keeping Class 11 - 2025-2026 Solutions Chapter 4 - Bases of Accounting

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

T.S. Grewal Class 11 Chapter 4 Q.1 - Income on Cash Basis of Accounting (Mohan)

Question 1

Key Concept

Solution

T.S. Grewal Class 11 Chapter 4 Q.2 - Income on Accrual Basis of Accounting (Mohan)

T.S. Grewal Class 11 Chapter 4 Q.3 - Cash Basis vs Accrual Basis Income (Shiva)

T.S. Grewal Class 11 Chapter 4 Q.4 - Cash Basis vs Accrual Basis Income (Naren)

T.S. Grewal Class 11 Chapter 4 Q.5 - Cash Basis vs Accrual Basis Income (Pawan)

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