In this nov 2010 IPCC exam, a question appeared giving receipts and payments a/c and asking us to compute income from PGBP. It was a total income problem.
Many of my friends opened profit and loss a/c and calculated profit as per merchentile system.
because of time lag, I arrived at profit directly by following cash system of accounting, which is permissable as per IT act as per sec 145, which says that assesee can either follow cash or mechantile system of accounting but not hybrid.
can the question be aswered in this way, i.e., arriving at profit following cash system of accounting?
CAclubindia
