Effects or consequences of recording improperly: The accrual con…

Effects or consequences of recording improperly:
The accrual concept of accounting defines that a transaction must be recorded when it actually occurs and not at the related payments are received are made
Revenue recognition concept also supports the same as according to the concept revenue is recognized only when once the related goods or services associated with the revenue has been delivered and not at the time of payment is made.
Debit to the cash a/c is done correctly (as asset is debited w

Posted in
09/12/2016