Like taught in CA PE1 can it be implemented that we take Expenses on mercantile basis and by preparing receipts and expenditure account create a provision for unrealised professional fees and hence take fees on cash basis
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Accounting for Professionals
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See u've given under the topic accounting for professionals. in this case its the discretion of those professionals to account under mercantile or cash basis.
But in this case whether it is mercantile or cash basis, only the received professional fees can be accounted for, as per the basic fundamental accounting assumption, <<we should provide for all possible losses and never anticipate gain>>, therefore we should not account the unrealised professional fees...
Mostly professionals follow cash system of accounting.
| Originally posted by : TusharSSampatM.Com CA,CS-FINAL | ||
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Mostly professionals follow cash system of accounting. |
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cash system of accounting is mostly follwed by professionals.
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