29 November 2009
X SOLD GOODS TO Y IN THE MONTH OF MARCH FOR WHICH BILL WAS ISSSUED TO Y FOR RS.1 LAKH AND THE PAYMENT WAS MADE BY Y IN THE MONTH OF Y.
2.Y IS FOLLOWING CASH BASIS WHEREIN THE AMOUNT PAID WAS RECGNISD IN THE YEAR OF PAYMENT?iS THE TREATMENT RIGHT?
30 November 2009
Its absolute right Sonia. Y can follow cash basis or accrual basis till the time his accounts are not required to be audited under any Act. Regards
CAclubindia
