Accounting of monthly revenue billing

You have to follow accrual system of accounting and take the income into consideration in FY 2019-20

Accrual system emphasis on provisioning of expenses, but no where recording of income on accrual basis is suggested.  

The basic concept in accrual accounting is that the income of your business is recognised when it is earned. This brings in the matching concept of accounting.

Accordingly, the business events are recognized by matching the costs incurred with the revenues earned at the time when the event/transaction occurs.

Hi Venky,

Please follow

Accrual Basis Concept & Matching Concept

Accrual Basis

Record transactions when revenue earned & when expenses incurred.

Matching Concept

Recording of expenses associated with revenue earned and recognized during the same accounting period.

when revenue earned

Accounts Receivable/Customer a/c Dr (Under head - Debtors-Balance Sheet) 

To Revenue a/c (Under head - Direct Income - Profit & Loss Account)

when expenses incurred

Expenses a/c Dr (Under head - Direct or Indirect Exp - Profit & Loss Account)

To Accounts Payable/Supplier a/c (Under head -Creditors-Balance Sheet)