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Accounting terminologies

Akhil Iyer (Student CA CPT ) (28 Points)

15 June 2014

What is the difference between 'ACCRUAL CONCEPT & MATCHING COST WITH REVENUE PRINCIPLE '.?

please give me some examples .

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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

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