Accrual basis of accounting
(Guest)
can anybody tell me that how accrual basis of accounting help in recording transaction in books of accounting.
sagar singh
(nothing)
(36 Points)
Replied 20 June 2016
CA shanky pahoja
(accountant)
(615 Points)
Replied 21 June 2016
in accrual basis of accounting only those income and expenses are recorded that relates to the relevant period. even if payment is not received or paid. and as it is recorded in the relevant year it will form part of the profit and loss a/c of that year only and not of the year in which actual payment is made.
CAclubindia
