What is the difference between 'ACCRUAL CONCEPT & MATCHING COST WITH REVENUE PRINCIPLE '.?
please give me some examples .
Akhil Iyer (Student CA CPT ) (28 Points)
15 June 2014What is the difference between 'ACCRUAL CONCEPT & MATCHING COST WITH REVENUE PRINCIPLE '.?
please give me some examples .
QLI Coaching for CA CS
(www.qli.co.in)
(539 Points)
Replied 16 June 2014
Dear Akhil,
Accrual concept is similar to the accouting principal that we use while preparing P&L a/c,all income and expenses have to treated in the current year when incurred (mercantile basis).
eg - o/s expenses, prepaid expenses, Advance income & o/s income.
Matching conept means all the incomes have to be matched with the respective expenses also proper clarity is required on it capital or revenue nature.
Regards
CA Vidhi Dedhia, QLI
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)