banner_ad

Basic query in accounting

This query is : Resolved 
Profile Image

Profile Image

(Querist)
20 September 2013 Respected Sir,
Q1)When we say Accounts are prepared on Cash basis or Accrual basis, what does it exactly means?
Q2)Can Income and Expenditure can be prepared on either Cash Basis or Accrual Basis?
Q3)In Accounting subject, by default which method do we adopt?

I will be very much thankful to u.
Profile Image

Nitesh Parmar

Profile Image

Nitesh Parmar (Expert)
20 September 2013 Cash basis and accrual basis means charging of expenses in P&L. when actually paid or when liability for same has been arised, like Interest, Interest may be due on particular date and may be paid on some other date then how to show the interest in p&l.
If we show it in P&l when it is actualy paid then it will be cash basis.
and if we show it in P&l when liability for same as been arised then it will be of accrual basis.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details