Cash based accounting system

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Can anybody confirm me, the organisations that are allowed to do accounting as per cash based accounting?

Replies (2)

non profit seeking orgaisations e.g. school, colleges, clubs etc are allowed to do accounting.on cash basis.

No any one is free to obtain any type pf accounting method except Company. As per Company Law companies are bound to follow the accounting system based on Accrual basis. 

You have to mention the basis of accounting in your auditor's report

 

>> Rajesh


CCI Pro

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