Non trading concern

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 what is meant by ACCRUAL BASIS transactions in Income and Expenditure account?

nupur

nupur (Expert)
Follow

21 September 2011 Accural basis of accounting means recording of income and expenses when they are incurred. For example salary for the month of march is paid in April , but salary expense will be booked for march as it has become due in march irrespective of payment being in April . Similarly if sale is done in the period of march and proceeds is received in april , the income will be booked in the month of march .

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2011 Thank you

Upgrade to CAclubindia Pro. Subscribe Now!