An engineer turns down a job offer of Rs500, 000 p.a. to start his own business. He will invest Rs 7 Lack of his own money, which has been in a bank account earning 10% in int7est per year. He also plans to use a building he owns that has been rented to another business for Rs 10,000 P.M. Revenue during the year was Rs 15Lakh, while other expenses were.
Advertising Rs 50,000
Rent Rs. 100,000
Taxes Rs. 50,000
Employee's Salaries Rs. 400,000
Supplies Rs.50,000
Prepare two income statements, are using the traditional accounting approach another using the opportunity cost approach to determine the profit.