18 August 2012
if a company follows cash system of accounting for first 3 months and accrual system for next 9 months then how we should report as per clause 11 of form 3CD?
as per clause 11(c) we have to give details of change in accounting method and its effect on profit & loss a/c
as per clause 11(d) we have to give details of deviation in method of accounting followed in p.y. from accounting standards prescribed u/s 145 and the effect thereof on profit & loss a/c
how do we report under above 2 clauses? is there any way to find out the deviation & its effect on p&l? pls reply at the earliest
18 August 2012
under 11c state that the cash system is used for first 3 months and for the rest of the period accrual system is used. The effect is to be worked out. One way of disclosure could be give profit under both the methods. The exercise is not very difficult. Make 2 columner statement.. one for existing i.e 3months cash +9 months accrual. In the second column work out the profit for the entire year on cash system
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