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WorksheetsINCOME AND REVENUE PART 3
Total questions: 10
Worksheet time: 3mins
I have EARNED the income when
I received the cash
I have done the job/service
I rented out a room for $2000/mth. For March I received $4000 cash.
Rental income (March) =
$2000
$4000
I rented out a room for $3000/mth. I received cash $4000.
rental income RECEIVABLE = $1000
rental income RECEIVED IN ADVANCE = $1000
I rent out a room for $3000 a month. I received cash $2000.
rental income RECEIVABLE = $1000
rental income RECEIVED IN ADVANCE = $1000
Cash RECEIVED = Income EARNED
True
False
Rental income EARNED = $4000. There was rental income RECEIVABLE of $1000.
Cash RECEIVED =
$4000
$5000
$3000
Business activities that have occurred, regardless when cash was received or paid, are recognised in the relevant accounting period.
Accounting Entity
Accrual basis of accounting
Income RECEIVABLE =
current ASSET
current LIABILITY
income RECEIVED IN ADVANCE =
current ASSET
current
LIABILITY
to CLOSE a rental income account (Step 4)
DR rental income
CR income summary
DR income summary
CR rental income
