Balance sheet made or receipt baisis or accurel

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Ramanuj

Accountant.

834 Points Joined May 2008

Dear all

I want to know about Balance sheet make of receipt basis or accurel basis. some tuition fee receipt in march,15 but Classes cancelled in April. how to do ? please advice.

thanks & regards

Ramanuj

Replies (1)

CA Suri Kota

Assistant Manager @ EY

955 Points Joined November 2007

All the books of accounts are made on accrual basis.

In you case as you received in advance from customers for which classes cancelled, as on 31st March , put them under Liablities as Adv received from customers.