revenue recognition

HI,

IF U R FOLLOWING CASH METHOD THEN IT SHOULD BE RECORDED ON RECEIPT AND IF U R GOIN ON MERCANTILE THEN ON DUE BASIS....................

IT IS CONSIDERED WHEN WE ACTUAL RECEIVED

HI

IT IS ADVISABLE TO FOLLOW MERCHANTILE SYSTEM OF ACCOUNTING (i.e) ON ACCURAL BASIS.SO COMMISSION, INTEREST INCOME SHOULD BE ACCOUNTED ON ACCURAL BASIS.

As per company law it is mendatory to follow Accrual basis of accounting so revenue income/expenditure are recognized when occuring other wise in Cash basis accounting it is recognised at the time of receipt/payment

>> Rajesh

IF U R FOLLOWING CASH METHOD THEN IT SHOULD BE RECORDED ON RECEIPT BASIS AND IF U R FOLLOWING MERCANTILE THEN ON ACCRUAL BASIS.

For Co's its mandatory to follow Accrual system.