Question
Which of the following shall not be recorded if the entity is following cash basis of accounting?
Answer: Option A
:
A
Cash accounting is an accounting method in which receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid. Hence, out of the above interest promised to paid by Mr. X shall be recorded in the year of payment & not in this year.
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:
A
Cash accounting is an accounting method in which receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid. Hence, out of the above interest promised to paid by Mr. X shall be recorded in the year of payment & not in this year.
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