Accounting basis in it

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pvsrikanth

pvsrikanth (Querist)
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21 November 2011 DEAR SIR,

WHAT IS ACCRUAL BASIS & RECEIPT BASIS. WHAT IS MERCANTILE SYSTEM

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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21 November 2011 on 31st March U have to Pay Rent of UR Shop Rs.10000/- of Month March.

If U Entered that Rent Payable as
Rent (Expenses)Dr.
to Rent payable.
and show as Rent payable in balance Sheet then its accrual basis.

and when u entered as and when paid say paid in april, as cash basis. then cash basis/receipt basis.

and merchantile basis is nothing but accrual basis.

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