In a cash system of accounting expenses like purchases are written off at the time of incurrance. Now, certain stock of raw material is available as on the last day of the year. Whether such closing stock is to be booked and yearly profitability is to be derived thereafter or not?
In other words: whether closing stock is recognised in cash system of accounting or not?
Cash System of Accounting
CA RAMESH KUMAR AHUJA (CA, DISA, LLB) (5452 Points)
02 February 2009