1.State with reasons whether the following events are business transactions or not for Mr.P.K.Bora who has started a business. 1. 2. 3. 4. 5. 6. Started business with Rs.20000 in cash as capital Opened a bank account in SBI by depositing Rs.9000 Received a pass book and cheque book from bank. Appointed Miss A. Hazarika as manager at a monthly salary of Rs.50000 Placed an order with M/s. United Brothers for goods for Rs.35000. A person named Mr. H. B. Sarma, enters into the shop and makes queries about the availability of certain item of goods and its price. 7. Gave lift to Mr. H. B. Sarma in the business car. 8. Received interest from bank Rs.300 9. Received a price list from M/s. Jindal Stores. 10. Received free samples worth Rs.5000 11. Paid salary to manager Rs.41000 12. Purchased machinery for Rs.15000 on credit from M/s. Prakash & Ltd. 13. Paid Rs.2000 to the peon as conveyance expense. 14. Took a loan of Rs.50000 from bank for son’s higher education. 2.State whether the following are cash or credit transaction. 1. Rahul commenced business with cash Rs.80000 2. Bought goods from Anjali on credit Rs.12000 3. Sold goods worth Rs.3000 to Kanaklata for cash. 4. Paid salary to staff Rs.65000 5. Purchased a Lenovo ideapad slim 3 ‘15.6 inch’ worth Rs.44500 from Modular Peripherals 6. Paid advance to the landlord Rs.15000 7. Bought furniture from Godrej Interio Tezpur worth Rs.115000 8. Purchased goods from M/s Saikia & Co. for cash Rs.11000 3.Shri R.G. Baruah is a practising lawyer. He carried on his profession from a rented premises.His income and expenses for the year ended 31.3.2023 are as underFees received from clients in cash Rs.290000 Fees for the year 2022-23 due from the clients Rs.39000 Rent of chamber paid Rs.55000 Rent of chamber for the month of March 2023 payable Rs.5000 Salary of clerk and office peon paid Rs.64000 Salary paid in advance to office peon Rs.4000 Salary of clerks outstanding Rs.3000 Telephone charges paid Rs.14600 Miscellaneous expenses paid Rs.8970 You are required to ascertain Shri. R.G. Baruah’s net income for the year ended 31.3.2023 under 1. Cash basis 2. Accrual basis
