friends, ihave a doubt about revenue recognition, whenever we received indirect income(eg.,commission,etc)when will we booked in p&l a/c, at the time of cash recept or occuring?
please reply friends
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revenue recognition
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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....................
| Originally posted by :prasanth | ||
| " | friends, ihave a doubt about revenue recognition, whenever we received indirect income(eg.,commission,etc)when will we booked in p&l a/c, at the time of cash recept or occuring? please reply friends |
" |
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.
IF U R FOLLOWING CASH METHOD THEN IT SHOULD BE RECORDED ON RECEIPT BASIS AND IF U R FOLLOWING MERCANTILE THEN ON ACCRUAL BASIS.
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