cash basic accounting and accrual basic accounting

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2016 Dear Sir,

What are the differences between cash-basis and accrual-basis accounting with example?

Amresh Joshi

Amresh Joshi (Expert)
Follow

07 October 2016 Under cash basis system, the expenses paid income received during the current period are recorded whether there are related to past, present or future, where as in case of accrual basis, we record the expenses and income related to current year,whether these are paid or not or received or not respectively.
Example : Paid to A salary for 13 months during the current year: i.e Rs.13000/-

Entry under cash basis system
Salary A/C Dr 13000
To Cash A/C 13000

Where as in case of Accrual basis system:

Salary A/C Dr 13000
To Cash A/C 13000

and
Prepaid Salary a/c Dr 1000
To Salary A/c 1000

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rampal Saini

Vijay Mishra

SUBHASH SAHA

Vinod Dharwarkar

R Prabhudoss

Subscribe Now

cash basic accounting and accrual basic accounting

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

Accountant

Senior Executive

GST CONSULTANT

CA Final

GST CONSULTANCY