Solution-Explain the definition of income

Explain the definition of income

Reference no: EM131594806

Question - The accountant of Comfort Shoe wholesalers is busy with recording income and is struggling with the following transactions:

2.1. Comfort Shoe sells a motor vehicle for R30 000, the vehicle was purchased for R20 000.

2.2. Received a deposit of R2 000 from AB Company to manufacture 50 pairs of shoes.

2.3. Commission income was received but not yet earned, R1 100.

2.4. Received R350 from a debtor for items sold on credit.

2.5. Comfort shoes sells inventory for R10 000 cash.

Required: Explain using the definition of "income" whether each of these transactions results in income for the period.

Reference no: EM131594806

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Explain the definition of income

Reference no: EM131594806

Reference no: EM131594806

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