what is accrual basis of accounting?explain in detail?
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Answer / dharmendra jha
Accrual basis means something that becomes due especially
an amount of money that is yet to be paid or received at
the end of the accounting period.
The accrual concept under accounting assumes that revenue
is realised at the time of sale of goods or services
irrespective of the fact when the cash is received. For
example, a firm sells goods for Rs 10,000 on 20th March
2010 and the payment is not received until 10th April 2010,
the amount
is due and payable to the firm on the date of sale i.e.
20th March 2010.
It must be included in the revenue for the year ending 31st
March 2010.
Similarly, expenses are recognised at the time services
provided, irrespective............
| Is This Answer Correct ? | 37 Yes | 6 No |
Answer / sameer
accrual accounting = recording income earned/ expenses made when they occur , irrespective of when cash is received or paid.
| Is This Answer Correct ? | 15 Yes | 0 No |
Answer / simran fukela
Accrual basis mean the income earned and expense incurred of this year is recorded in this year whether money paid and receipt in any financial year.
For example: rent charges of Rs. 10000 incurred in the month of march 2015. But Payment of expenditure is made on April 2016 but expenditure shall be recorded in march 2015
| Is This Answer Correct ? | 1 Yes | 0 No |
acrrual means recording the revenue or expenses for the period in which they are earned or incurred irrespective of whether cash transfer has taken place or not.
Earned= right to receive is established....
Incurred= obligation to pay is established...
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / baig
The profit arises only when there is an increase in owners capital, which is a result of excess of revenue over expenses and loss.
| Is This Answer Correct ? | 1 Yes | 15 No |
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