2 ) What is the profit for june month on accrual basis if insurance taken for 12k per annum and deferred experditure in balance sheet ?

Question

Accepted Answer

The profit for June on an accrual basis can be calculated by considering the insurance expense and deferred expenditure.

To calculate the profit for June on an accrual basis, we need to consider the insurance expense and deferred expenditure.
The insurance expense of $12,000 per annum needs to be allocated for the month of June.
Deferred expenditure refers to expenses that have been paid in advance but are yet to be recognized as expenses in the profit and loss statement.
If there is any deferred expenditure in the balance sheet, it needs to be accounted for in the profit calculation for June.
By considering the insurance expense and any deferred expenditure, the profit for June on an accrual basis can be determined.