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
4 Replies
Shruthi
(PCC Student)
(111 Points)
Replied 15 June 2011
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...
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 15 June 2011
Mostly professionals follow cash system of accounting.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 15 June 2011
| Originally posted by : TusharSSampatM.Com CA,CS-FINAL | ||
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Mostly professionals follow cash system of accounting. |
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Mohammad Asif
(chartered accountant)
(191 Points)
Replied 15 June 2011
cash system of accounting is mostly follwed by professionals.
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