Cash accountancy method
This query is : Resolved
07 October 2012
if we file income tax return with adopting cash accounting method can we show creditiors and debtors in balance sheet. i have a confusion that if we adopt cash method that creditors and debtors should not be created in balance sheet. please mail me with answer
08 October 2012
Under cash accounting system, income and expense is recognised when the same is realised or paid, as the case may be.
Therefore, debtors and creditors will not appear in the Balance Sheet.
Therefore, debtors and creditors will not appear in the Balance Sheet.
Prakash Kochar
(Expert)
08 October 2012
If the secured loan is obtained from bank, or amount is invested in FD with bank how it will be accounted and will it not appear in balance sheet?
12 October 2012
Secured loan will be shown in the Balance Sheet.
Also FD will be shown as investment. The accrued interest shall be shown as income if accrual basis of accounting is followed.
Also FD will be shown as investment. The accrued interest shall be shown as income if accrual basis of accounting is followed.
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