ACCURAL SYSTEM OF ACCOUNTING

This query is : Resolved

Share Report Follow Query Ask a Query

sriram

sriram (Querist)
Follow

18 November 2008 Hi

what is accural system of accounting can anyone explain me with an example

Regards
Ramanathan.V

Deepak Agrawal

Deepak Agrawal (Expert)
Follow

18 November 2008 Accrual system of accounting means booking transaction as soon as it occurs even though there is no cash outflow or inflow.
for ex: If U purchase stationary on credit for 1000 Rs, then u wil have to pass entry for it even though U have not paid Rs. 1000 to shop keeper
Entry will be: Prinitng Stationary A/c Dr
To supplier a/c

Deepak Agrawal

Deepak Agrawal (Expert)
Follow

18 November 2008 It is seperate form cash systmem where entry is not passed unless cash transaction takes place

Ravikumar.G

Ravikumar.G (Expert)
Follow

18 November 2008 ACCRUAL BASIS OF ACCOUNTING is wherein revenue and expenses are recorded in the
period in which they are earned or incurred regardless of whether cash is received or
disbursed in that period. This is the accounting basis that generally is required to be used in
order to conform to generally accepted accounting principles (GAAP) in preparing financial
statements for external users.

Ravikumar.G

Ravikumar.G (Expert)
Follow

18 November 2008 ACCRUAL is the recognition of revenue when earned or expenses when incurred regardless of
when cash is received or disbursed.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
Follow

19 November 2008 Accrual system is a method of recogonising revenue when it is earned or expenditure when it is incurred.Cash for the income and payment for the expense will be made at the later point of time.It is a process of recording income and expense at the point of Its occurance.It need not means credit basis.some sort of advance recording of transaction also included in this method.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

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

RAGHUNATH KASIBHOTLA

raval umesh

Rameshkumar Jain

DSK TMC

Hemkumar

Subscribe Now

ACCURAL SYSTEM OF ACCOUNTING

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA