it is the amount what you earn by selling your product or
services.
Net Income:
It is the amount what remains in the end from revenue you
earn after deducting all costs which you have incurred for
making that product or providing services.
Example:
for example if you go and give tution to somebody and that
person gives you 100$ then this is your revenue. but you go
to teach and pay texi fare of $10 for reaching the tution
centre then this taxi fare is your cost and you will deduct
this cost from your revenue to reach to net income of $ 90.
Net Profit = Revenue - Cost
$90 = $100 - $10
revenue:- the amount of money that a company actually receives
during a specific period including discounts and deductions for returned merchandise. it is the top line figure from costs are subtracted to determine net income
income:- it is the amount what remains in the end from revenue
you earn after deducting all costs which have incurred for making that product or providing services
Revenu is earned by the sales activities to providing goods
and services during the period of time. The expenditure
which is incurred for producing goods it will recover
through revenue.
income is earned by the investment. to gain on investement
is called income.
Kindly solve the following problem.
Financial accounting.
1. Bheema does not maintain his book in the double entry
system . His books showed following facts.
Receipts for the year ended 31.12.2007
from sundry Debtors
17625.00
Cash sales
4125.00
paid by bheema (proprietor)
2500.00
total
24250.00
payments made for the year ended 31.02.2007
new machinery purchased
625.00
drawings
1500.00
wages
6725.00
salaries
1125.00
interestpaid
75.00
telephone
125.00
Rent
1200.00
lighting
475.00
sundry expenses
2125.00
sundry creditors
7625.00
total
21600.00
Assets and Liabilities
As on 31.12.2006
As at 31.12.2007
sundry creditors
2525.00
2400.00
sundry Debtors
3750.00
6125.00
Bank
625.00
?
stock
6250.00
3125.00
plant
7500.00
7315.00
from the Above data , prepare TRADING A/C, PROFFIT & LOSS
A/C for the year ended
31st december 2007 and the BALANCE SHEET as on on that date.
Kindly solve the problem