banner_ad

cash and mercantile system

This query is : Resolved 
Profile Image

Profile Image

(Querist)
21 March 2009 If we have to follow only mercantile system of accounting then why do we mention in notes to accounts and in 3CD report that the compamy follows 'mercantile system'
Profile Image

CA LOKESH KASAT, FCA, M.Com

Profile Image

CA LOKESH KASAT, FCA, M.Com (Expert)
21 March 2009 Dear Amit,
First it is not necessary to follow Mercantile System.

Section 145 suggest two System of accounting in IT i.e Mercantile and Cash. therefore you have to mention.
Profile Image

CA Nitin Wadhwani

Profile Image

CA Nitin Wadhwani (Expert)
21 March 2009 Yes.
You can either follow mercantile or cash method for computing income from business or profeesion and income from other sources u/s 145.
Mercantile method is compulsory only if the entity is a company registered under Indian Companies Act, 1956 u/s 209.
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
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details