cash basis sustem of accounting
This query is : Resolved
18 November 2008
hello friendz....
can any one tell me the exact meaning cash base system of accounting?
i think its meaning is when u actually paid expense then record it as expense similarly for income also.
suppose
i purchased materials worth rs 50000 on six month credit from supplier on 1.02.2008.now under cash system of accounting what entry i should pass on 01.02.08?
as i have not paid i cant treat it as expense
n if i dont pass any entry then as on 31.03.2008 my balance sheet will not gice true n fair view.....
plz reply
treat assessee as individual/firm etc.
bcoz co.has to follow sec 209
can any one tell me the exact meaning cash base system of accounting?
i think its meaning is when u actually paid expense then record it as expense similarly for income also.
suppose
i purchased materials worth rs 50000 on six month credit from supplier on 1.02.2008.now under cash system of accounting what entry i should pass on 01.02.08?
as i have not paid i cant treat it as expense
n if i dont pass any entry then as on 31.03.2008 my balance sheet will not gice true n fair view.....
plz reply
treat assessee as individual/firm etc.
bcoz co.has to follow sec 209
18 November 2008
as an individual/firm assessee u can't pass the entry until the payment is made.
as u said that in this way correct position might not be shown on 31/3.
but becz of this default ,we follow accrual system.
therefore, entry will not be passed whether it shows a wrong position.
as u said that in this way correct position might not be shown on 31/3.
but becz of this default ,we follow accrual system.
therefore, entry will not be passed whether it shows a wrong position.
18 November 2008
It arises only cash movements i.e cash payments and cash receipts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- FORM 26A APPLICABILITY
- Multiple trade mark
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Regarding TDS Applicability For Director Remuneration
- Value of property in capital gain
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
