Cash vs Accrual accounting

For all these examples assume the BALANCE DAY is 31/12/2001

1.0 BZ Ltd sold $20000 worth of goods 10/10/01. The customer would pay the amount on 15/01/2002.

Under Cash Accounting

Sales = $0

Under Accrual Accounting:

Sales = $20,000

2.0 Total wages paid to employees $4000. However, $500 remain unpaid for work done from 25/12. This would be paid on 5/1/02.

What is the total wages for the period?

Under Cash Accounting:

Wages = $4000

Under Accrual

Wages = $4500

3.0 Total cash received for sales for the year $50000. Of this amount $5000 worth of goods is yet to be delivered. This would be done on 10 January 2002.

Total Sales

Cash Accounting

Sales = $50000

Accrual

Sales = $45000

4.0 Total cash received for sales for the year $50000. in addition $5000 worth of goods was delivered but cash has not been received. This would be done on 10 January 2002.

Total Sales

Cash

Sales = $50000

Accrual

Sales = $55000