Subscription require two-year cost 2400

A Subscription Require two-year communited cost 2400(total) Which must be pay.

1. Services cost 600 each year.

2. Tax Rate 10 %

3. 1st Jen 2015 cash in hand 600.

4. Owner investment 600.

Financial Statement as 31st Dec 2015.

Cash Basis	Accrual Basis
Revenue   2400	Cash 1200
Expense 600	Expense 600
2400-600=1800	1200-600=600
Tax 10%	Tax 10%
1800*10/100=180	600*10/100=60
1800-180=1620	600-60=540
Net income 1620	Net income 540

Financial Statement as 31st Dec 2016.

Cash 0	Cash 1200
Expense 600	Expense 600
0+600=600	1200-600=600
Tax 10%	Tax 10%
600*10/100=60	600*10/100=60
600-60=540	600-60=540
Loss 540	Net income 540

Cash Basis Balance Sheet

Assets	Rs	Laibilties	Rs
Cash 600	600	Capital 600	600
Profit 1620	1620	Profit 1620	1620
Total	600+1620=2220	Total	600+1620=2220

Accural Basis Balance Sheet

Assets	Rs	labibilties	Rs
Cash 600	600	Capital 600+ Profit 540	1140
Profit 1740	1740	unearnd service	1200
Total	600+1740=2340	Total	1140+1200=2340

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