how to pass entry system

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shivshanker (Querist)
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05 July 2011 dear you all
could u pls advice me my senior Accountan is using single entry system like
if made payment of receipt
he just make a voucher and pass the entry not book any exp.
is right?

or there is must book exp journal entry?

advice me
thanks

shiv

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 July 2011 No. need to follow the double entry system of accounting, your senior accountant following cash basis system, not single entry system. ask him to follow the accrual basis accounting which we need to create liability first and payment after that

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