Accrual concept is recognizing & recording of economic event when it occurs irrespective of payment transaction.
this is okay for some transaction like if we are making salary provision for a month, we debit salary expense & make provision for salary. likewise commission receivable but not recd so we debit commission receivable & credit commission account.
but when we have all the taxes under duties & taxes-current liabilities, & at the end of the month when we nullify our input & output tax balances & transfer the balance remaining in output tax liability to tax payable ledger, how does the accrual concept works here?
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