what is Accrual ?

Answer Posted / rajaram kolle

Accrual basis of accounting is to create liabilities and
assets in the books as soon as it becomes receivable or
payable, irrespective of their receipt and payment. Example,
Booking expenditure for Rent, Interest, salaries on last day
of the month, so that the profit and loss account and
balance sheet gives a correct picture as on that date, while
preparing financial results.

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