Cash basis accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2014 Hello sir,

if i follow cash method for accounting, then can i pass the entry for provision like march salary paid in april so there is entry for salary payable

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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10 April 2014 No, you are allowed to either follow cash basis or accrual basis of accounting. Hybrid accounting is not allowed.

Logically also in a year you will pay 12 times salary and other expenses. You cannot say that i paid 12 months expenses in cash and 13th month expenses shall be booked on accrual basis for March.

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