Elizabeth is an interior designer who has worked with some ofthe greats and started...

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Accounting

Elizabeth is an interior designer who has worked with some ofthe greats and started her new business as a sole trader on 1 Julyof the current tax year. She operates from a store in beautifuldowntown Toowoomba where she offers design advice and also sellsvarious items to beautify the home. During the current year ended30 June, Elizabeth advises that her accounts show the following:Sales proceeds received for the sale of items from the store $70000. Fees received for advice on interior design work $140 000.Amounts owing to her as at 30 June for items of trading stock soldon credit $8000. Amounts not yet billed to customers for advicegiven prior to 30 June, $16 000. What amount should Elizabethinclude in her assessable income for the year ended 30 June?
A.226000 B.210000 C.234000 D.24000 E.218000

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Assessable income means the taxable income withoot the deductions Assuming that Elizabeth follows Accrual method of accounting which follows the principle to record the income which has See Answer

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In: AccountingElizabeth is an interior designer who has worked with some ofthe greats and started her...Elizabeth is an interior designer who has worked with some ofthe greats and started her new business as a sole trader on 1 Julyof the current tax year. She operates from a store in beautifuldowntown Toowoomba where she offers design advice and also sellsvarious items to beautify the home. During the current year ended30 June, Elizabeth advises that her accounts show the following:Sales proceeds received for the sale of items from the store $70000. Fees received for advice on interior design work $140 000.Amounts owing to her as at 30 June for items of trading stock soldon credit $8000. Amounts not yet billed to customers for advicegiven prior to 30 June, $16 000. What amount should Elizabethinclude in her assessable income for the year ended 30 June?A.226000 B.210000 C.234000 D.24000 E.218000