Method of accounting
This query is : Resolved
Raza Murad.A.R
(Querist)
27 June 2012
Is cash basis of accounting by a private company permitted ?
A.S 1 applicable for all enterprises.It also says about fundamental accounting assumptions.
A.S 1 applicable for all enterprises.It also says about fundamental accounting assumptions.
28 June 2012
Section 209 of the Companies Acr requires that books of accounts shall be maintained on mercantile/accrual basis.
Section 209 is applicable to ALL companies.
So a private limited company has to maintain books of accounts on accrual basis.
It CANNOT maintain books of accounts on cash basis.
It will be violation of Section 209 and AS 1.
Section 209 is applicable to ALL companies.
So a private limited company has to maintain books of accounts on accrual basis.
It CANNOT maintain books of accounts on cash basis.
It will be violation of Section 209 and AS 1.
Raza Murad.A.R
(Querist)
30 June 2012
Thank you sir :-)
30 June 2012
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