Reference no: EM132947110
Question - Rabiya started operating a service proprietorship on April 1, 2014 with an initial cash investment of P120,000, The business provided P38,400 of services in April and received full payment in May, The business incurred expenses of P18.000 in April which were paid in June. During May, Rabiya drew P6,000 against his capital account. What was the income for the two months ended May 31, 2014 under the following method of accounting?
P14,400 for both cash basis and accrual basis
P32,400 for cash basis and P14,400 for accrual basis
P20,400 for both cash basis and accrual basis
P20,400 for cash basis and P38,400 for accrual basis
None of the above
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