Amongst the two methods of accounting generally followed in India, i.e. mercantile system and cash system, mercantile system has been defined exhaustively. But what about "cash system of accounting"?? Generally understood meaning of cash system would be that, a cash system of accounting is one where revenue and expense are recorded only when received or paid. But is there any authoritative statement on this?? That is , institute's publication, case law?? Please cite a reference. Thanks in advance.
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Where is cash system of accounting defined??
Replies (3)
Yes,professionals like CA and ICWAs&doctors Are following thye cash basis of a/cing only
Mr. Ramcharan, its not necessary that only professionals follow cash basis of accounting, even a business can follow the same. Anyway, my query was, where is this "cash system of accounting" defined?? Any idea??
i DID NOT MENTIONED IN MY REPLY THAT ONLY PROFFESSONAL CAN FOLLOW THE CASH SYSTEM .IHAVE JUST GIVE MY VIEW THAT THEY ARE FOLLOWING
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