Books of accounts

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Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2012 My frnd have business of computer software nd maintenance nd supply of comp. hardware having turnover around 10 to 15 lacs. They deal in govt tenders relatd with above work, their bills clear sometime later, as its a work of govt. So what type of books of accounts should they adopt either cash basis or accrual basis???? pls pls pls rep...

CA Guru M

CA Guru M (Expert)
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04 August 2012 Following cash basis or accrual basis of accounting depends on structure of business that whether it is company for which arrual basis is mandatory or other thatn corporate.

I suggest you to follow accrual basis to avoid confusion.

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 ok. thanks alot.

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CA Guru M

CA Guru M (Expert)
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04 August 2012 You are welcome