Criteria

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29 August 2014 What is criteria for maintaining books of accounts as per accrual basis for companies, firm and proprietorship firm.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 August 2014 Accrual system means that all expenses which have been INCURRED should be accounted for in the books of accounts even though payment has not been made.

Further provision should be made for expenses which have been incurred but invoice for the same has not been received.

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30 August 2014 sidhartha ji, just i want to know it is mandatory as per law to maintain books of account as per accrual basis.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 August 2014 Accounting Standard 1 issued by ICAI makes it mandatory to maintain books of accounts on accrual basis.

Also Companies Act requires books of accounts to be maintained on accrual basis.

Querist : Anonymous

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31 August 2014 sidhartha ji ,once more question is that firm and proprietorship firm also necessary to maintain books of accounts on accrual basis as per As or as which section.