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Answer Posted / sudhir anchan
are u know about accural basis and monetary basis. accural
basis means every transaction which are done 1 financial
year are entered and cash basis means every sales which are
form in cash are enter. book profit means profit which are
earned in 1 financial yera (accural basis) and cash profit
means profit earned on the basis of cash basis. book profit
are shown in the profit and loss a\c for the purpose of
income tax and cash pofit are for bussiness men with help
of this they known about what the standard of cash inflow
and outflow.
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