Accounting Systems: Cash vs. Mercantile for Hospitals

Accounting system Question

Kollipara Sundaraiah

B.com

2404 Points Posted on 18 January 2021

Assess maintained a private hospital.
question:
Assess maintained accounting records books cash system or mercantile system is correct method.
2.differenace between cash system and mercantile system.

Replies (2)

Quick Summary

This discussion explores the suitability of cash versus mercantile accounting systems for private hospitals. It clarifies that the mercantile system records transactions as they occur, while the cash system records them only when cash changes hands. The consensus leans towards the mercantile system being more appropriate for hospital accounts, despite one opinion favouring the cash system for its perceived benefits.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 18 January 2021

Mercantile system is appropriate for hospital accounts
Cash system is the system where transactions are recorded after cash received or paid in cash whereas in mercantile system transactions are recorded as and when it is accrued