Gross receipt in profir & loss a/c

Sumiti Jain (FP) (1364 Points)

21 August 2013  

What should be the right valur for Gross Receipts shown in Profit & Loss A/c if:-

In Form 26 AS gross receipts are shown on actual receipt basis. In Service Tax returns, value is on actual receipt basis. In bank obvious it is shown as it is received. But in Profit & Loss A/c year ending figures are also shown which are received in April in the next year.

 

Kindly clarify me what is the right method to enter the transactions-whether on bill wise or on actual receipt basis.