You are provided with the following information on the accounts receivable of Don Lawlor, a self employed solicitor, who has only one employee who is, employed as a receptionist, for the year ended 30 June 2020.
What will be the assessable income for Don Lawlor?
Accounts receivable balance as at 1 July 2019 $25,000
Cash received from clients $180,000
Accounts receivable balance as at 30 June 2020 20,000
Which of the following statements is true?

Question

Quizplus · Accepted Answer

Assessable income = cash received from clients + (opening accounts receivable - closing accounts receivable)= $180,000 + ($25,000 - $20,000)= $180,000 + $5,000= $185,000

You Are Provided with the Following Information on the Accounts