Accounts
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 October 2016
Dear friends and experts
I am going to take incharge of accounts of small concern as a part time job. Their turnover maybe around 50 lakhs per year. Till now they maintain a small register in which payments and receipts are recorded separately. They didnt give importance to accounts and there is a lack of manpower. What my question is after taking in charge of accounts as a part time job, shall i follow cash basis of accounts? If i didnt follow accrual basis of accounts what will be it's impact. It will be helpful for me if anybody gives detail information. Thank you very much in advance
I am going to take incharge of accounts of small concern as a part time job. Their turnover maybe around 50 lakhs per year. Till now they maintain a small register in which payments and receipts are recorded separately. They didnt give importance to accounts and there is a lack of manpower. What my question is after taking in charge of accounts as a part time job, shall i follow cash basis of accounts? If i didnt follow accrual basis of accounts what will be it's impact. It will be helpful for me if anybody gives detail information. Thank you very much in advance
28 October 2016
Better to follow accrual basis. Coz all the tax liabilities occurs on accrual basis and not on cash basis(reliasation).
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