What is the difference between 'ACCRUAL CONCEPT & MATCHING COST WITH REVENUE PRINCIPLE '.?
please give me some examples .
Akhil Iyer (Student CA CPT ) (28 Points)
15 June 2014What is the difference between 'ACCRUAL CONCEPT & MATCHING COST WITH REVENUE PRINCIPLE '.?
please give me some examples .
QLI Coaching for CA CS
(www.qli.co.in)
(539 Points)
Replied 16 June 2014
Dear Akhil,
Accrual concept is similar to the accouting principal that we use while preparing P&L a/c,all income and expenses have to treated in the current year when incurred (mercantile basis).
eg - o/s expenses, prepaid expenses, Advance income & o/s income.
Matching conept means all the incomes have to be matched with the respective expenses also proper clarity is required on it capital or revenue nature.
Regards
CA Vidhi Dedhia, QLI