{"id":1912,"date":"2019-07-18T09:43:56","date_gmt":"2019-07-18T09:43:56","guid":{"rendered":"https:\/\/commerceiets.com\/?p=1912"},"modified":"2019-07-18T09:43:56","modified_gmt":"2019-07-18T09:43:56","slug":"basis-of-accounting","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/basis-of-accounting\/","title":{"rendered":"BASIS OF ACCOUNTING &#8211; CLEAR EXPLANATION"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#BASIS_OF_ACCOUNTING-_MEANING\" title=\"BASIS OF ACCOUNTING- MEANING\">BASIS OF ACCOUNTING- MEANING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#CASH_BASIS_OF_ACCOUNTING\" title=\"CASH\nBASIS OF ACCOUNTING\">CASH\nBASIS OF ACCOUNTING<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#FEATURES_OF_CASH_BASIS_OF_ACCOUNTING\" title=\"FEATURES OF CASH BASIS OF ACCOUNTING&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \">FEATURES OF CASH BASIS OF ACCOUNTING&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#ADVANTAGES_OF_CASH_BASIS_OF_ACCOUNTING\" title=\"ADVANTAGES\nOF CASH BASIS OF ACCOUNTING\">ADVANTAGES\nOF CASH BASIS OF ACCOUNTING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#DISADVANTAGES_OF_CASH_BASIS_OF_ACCOUNTING\" title=\"DISADVANTAGES\nOF CASH BASIS OF ACCOUNTING\">DISADVANTAGES\nOF CASH BASIS OF ACCOUNTING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#SUITABILITY\" title=\"SUITABILITY\">SUITABILITY<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#ACCRUAL_BASIS_OF_ACCOUNTING\" title=\"ACCRUAL\nBASIS OF ACCOUNTING\">ACCRUAL\nBASIS OF ACCOUNTING<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#FEATURES_OF_ACCRUAL_BASIS_OF_ACCOUTING\" title=\"FEATURES\nOF ACCRUAL BASIS OF ACCOUTING\">FEATURES\nOF ACCRUAL BASIS OF ACCOUTING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#ADVANTAGES_OF_ACCRUAL_MERCANTILE_SYSTEM_OF_ACCOUNTING\" title=\"ADVANTAGES\nOF ACCRUAL\/ MERCANTILE SYSTEM OF ACCOUNTING\">ADVANTAGES\nOF ACCRUAL\/ MERCANTILE SYSTEM OF ACCOUNTING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#DISADVANTAGES_OF_ACCRUAL_MERCANTILE_SYSTEM_OF_ACCOUNTING\" title=\"DISADVANTAGES\nOF ACCRUAL\/ MERCANTILE SYSTEM OF ACCOUNTING\">DISADVANTAGES\nOF ACCRUAL\/ MERCANTILE SYSTEM OF ACCOUNTING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#SUITABILITY-2\" title=\"SUITABILITY\">SUITABILITY<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/commerceiets.com\/basis-of-accounting\/#HYBRID_SYSTEM_OF_ACCOUNTING\" title=\"HYBRID\nSYSTEM OF ACCOUNTING\">HYBRID\nSYSTEM OF ACCOUNTING<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"BASIS_OF_ACCOUNTING-_MEANING\"><\/span>BASIS OF ACCOUNTING- MEANING<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">The basis of <a href=\"https:\/\/commerceiets.com\/accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"accounting (opens in a new tab)\">accounting<\/a> is a set of rules that are followed by the accountant for preparing the financially reports like profit and loss account, balance sheet and cash flow statement. The basis of accounting tells about when and which transaction is to be recognized and how to record those transactions in the books of accounts.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The following are the various systems of accounting:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/SLIDE-18.jpg\" alt=\"BASIS OF ACCOUNTING\" class=\"wp-image-1914\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/SLIDE-18.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/SLIDE-18-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/SLIDE-18-768x576.jpg 768w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><figcaption>BASIS OF ACCOUNTING<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CASH_BASIS_OF_ACCOUNTING\"><\/span>CASH\nBASIS OF ACCOUNTING<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Under\ncash basis of accounting, the transactions are recorded when actual cash is\nreceived or paid. It means, the income is recognized when cash is received and\nthe expenses are recognized when the cash is paid. It does not matter whether\nthe cash received or paid belong to current, past or future year. Thus there is\nno scope to record the credit transactions. This basis of accounting is also\nknown as Receipts basis of accounting.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FEATURES_OF_CASH_BASIS_OF_ACCOUNTING\"><\/span>FEATURES OF CASH BASIS OF ACCOUNTING&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>Entry\nis made in the books of accounts only when actual cash is paid or received.<\/li><li>No\ncredit transaction is recorded.<\/li><li>No\nadjustments are required like for outstanding expenses, accrued income etc.<\/li><li>The\nprofit is the excess of cash receipt over cash payments.<\/li><li>The\nloss is the excess of cash payments over cash receipts.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ADVANTAGES_OF_CASH_BASIS_OF_ACCOUNTING\"><\/span>ADVANTAGES\nOF CASH BASIS OF ACCOUNTING<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>This\nis very simple and easy basis of accounting.<\/li><li>It\nsatisfies the conservative attribute of many businessmen.<\/li><li>It\ndoes not require the use of estimates and personal judgments.<\/li><li>On\nthis basis, the books can be maintained by junior staff also.<\/li><li>It\nis easy to calculate the profit or loss of the business house.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DISADVANTAGES_OF_CASH_BASIS_OF_ACCOUNTING\"><\/span>DISADVANTAGES\nOF CASH BASIS OF ACCOUNTING<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>It\ndoes not give true and fair view of profit and loss account and balance sheet\nof the business.<\/li><li>No\nadjustments are passed which gives an incomplete view of the financial reports.<\/li><li>There\nare more chances of manipulation of accounts.<\/li><li>It\ndoes not record non-cash items like depreciation etc.<\/li><li>It\ndoes not follow the matching principle of accounting.<\/li><li>This\nbasis of accounting is not recognized by the Companies Act, 2013.<\/li><li>Income\nTax Authorities do not recognize this system.<\/li><li>Accounts\nmaintained on this basis cannot be accepted as evidence in the court of the\nlaw.<\/li><li>This\nsystem does not distinguish between capital and revenue items and as a result\nthere is no consistency in the profits shown of various years.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SUITABILITY\"><\/span>SUITABILITY<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">This\nsystem is useful for the adoption by professional people like lawyers, doctors,\nchartered accountants etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ACCRUAL_BASIS_OF_ACCOUNTING\"><\/span>ACCRUAL\nBASIS OF ACCOUNTING<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Accrual\nbasis of accounting is also known as Mercantile basis of accounting. It is a\nsystem where transactions are recorded when they arise. It does not matter\nwhether the cash received or paid or not. It means the incomes are recorded in\nthe books of the accounts when it is earned, irrespective of the fact that it\nis received or accrued.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">EXAMPLE:\nRent accrued \u20b91,000.\n(earned but not received)<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Similarly,\nthe expenses are recorded in the books of accounts when they incurred, it does\nnot matter whether cash is paid or outstanding for the same.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">EXAMPLE:\nSalary outstanding. (due but not paid)<\/p>\n\n\n\n<p class=\"has-medium-font-size\">This\nsystem is most commonly used and followed by every business organisation.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FEATURES_OF_ACCRUAL_BASIS_OF_ACCOUTING\"><\/span>FEATURES\nOF ACCRUAL BASIS OF ACCOUTING<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>It\nrecognizes the credit transactions.<\/li><li>It\nrecords all the transactions whether cash is paid or received for the same or\nnot.<\/li><li>This\nsystem is recognized by the Companies Act, 2013 and Income Tax Authorities.<\/li><li>The\nadjustments of Outstanding expenses, Accrued Income, income received in\nadvance, prepaid expenses are passed.<\/li><li>It\nfollows matching principle of accounting. <\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ADVANTAGES_OF_ACCRUAL_MERCANTILE_SYSTEM_OF_ACCOUNTING\"><\/span>ADVANTAGES\nOF ACCRUAL\/ MERCANTILE SYSTEM OF ACCOUNTING<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>It\nshows the true and fair view of the final accounts maintained. <\/li><li>It\nfollows the matching principle of accounting which helps in calculating the\naccurate profit or loss for the year.<\/li><li>This\nsystem distinguishes between capital and revenue items, thus provides\nconsistency in calculation of profit or loss.<\/li><li>It\nrecord the non-cash items like depreciation.<\/li><li>It\nis recognized by Companies Act, 2013 and Income Tax Authorities.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DISADVANTAGES_OF_ACCRUAL_MERCANTILE_SYSTEM_OF_ACCOUNTING\"><\/span>DISADVANTAGES\nOF ACCRUAL\/ MERCANTILE SYSTEM OF ACCOUNTING<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>It\nrequires the use of personal judgments and estimates.<\/li><li>It\nis not a simple method of accounting to be followed. <\/li><li>This\nsystem of accounting requires analytical skills and based on accounting\ntechnicalities.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SUITABILITY-2\"><\/span>SUITABILITY<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">This\nmethod is suitable to all the profit making business organisations that are\nengaged in trading and manufacturing activities. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"HYBRID_SYSTEM_OF_ACCOUNTING\"><\/span>HYBRID\nSYSTEM OF ACCOUNTING<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">It is the mixed basis of accounting. It is the mixture of cash basis and accrual basis of accounting. Under hybrid basis of accounting, revenues and assets are recorded on cash basis whereas expenses and liabilities are recorded on accrual basis. Usually professional people such as doctors, lawyers etc. adopt this method and prepare Receipts and Expenditure Account to ascertain their net income during a period. They ignore their outstanding income but take into consideration outstanding expenses. The idea is to claim deduction for outstanding expenses while computing taxable income. Hybrid system of accounting is an acceptable and approved system as per the judgment of the courts. <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting\/\"><strong>Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/non-profit-organisation\/\"><strong>Non profit organisation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/deferred-revenue-expenditure\/\"><strong>Deferred Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liquidity-ratios-types\/\"><strong>Liquidity ratios<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/nature-of-accounting\/\"><strong>Nature of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/receipt-and-payment-account-pdf\/\"><strong>Receipts and Payments Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-receipt\/\"><strong>Capital receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/acid-test-ratio-formula\/\"><strong>Acid Test Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/benefits-of-accounting\/\"><strong>Benefits of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-receipt\/\"><strong>Revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cash-ratio\/\"><strong>Cash Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-cost-accounting-and-financial-accounting\/\"><strong>Difference between cost accounting and financial accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\"><strong>Financial accounting, cost accounting and management accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-and-revenue-receipt\/\"><strong>Difference between capital and revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/financial-ratio-analysis\/\"><strong>Financial ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-transaction-and-event\/\"><strong>Difference between transaction and event<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/transactions\/\"><strong>Transactions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/users-of-accounting\/\"><strong>Users of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/current-ratio-formula\/\"><strong>Ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/limitations-of-accounting-2\/\"><strong>Limitation of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-expenditure\/\"><strong>Capital Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/basis-of-accounting\/\"><strong>Basis of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/balance-sheet\/\"><strong>Balance Sheet<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/book-keeping\/\"><strong>Book Keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-expenditure\/\"><strong>Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Reserves Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/profit-and-loss-account\/\"><strong>Profit and loss Account<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accountancy\/\"><strong>Accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-expenditure-and-revenue-expenditure\/\"><strong>Difference between capital and revenue expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Provisions&nbsp;<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/trading-account\/\"><strong>Trading Account<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting as science or an art<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-equation\/\"><strong>Accounting Equation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/single-entry-system-in-accounting\/\"><strong>Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-accounting\/\"><strong>Process of Accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book Keeping vs accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book keeping vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/statement-of-affairs-and-balance-sheet-difference\/\"><strong>Difference between statement of affairs and balance sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of Accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/branches-of-accounting\/\"><strong>Branches of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/ifrs\/\"><strong>IFRS<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Accounting Concepts vs Accounting conventions<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cash-and-mercantile-system-of-accounting\/\"><strong>Cash and mercantile system of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Difference between accounting concepts and conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/double-entry-system-of-accounting\/\"><strong>Double entry system of book keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-provisions-and-reserves\/\"><strong>Difference between provisions and reserves<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-principles\/\"><strong>Accounting Principles<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-standards\/\"><strong>Accounting Standards<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-double-single-entry-system\/\"><strong>Double entry vs Single entry system<\/strong><\/a><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/golden-rules-of-accounting\/\"><strong>Golden rules of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-accounting\/\"><strong>Objectives of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/history-of-accounting-pdf\/\"><strong>History of Accounting<\/strong><\/a><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<p>budgetary basis of accounting, gaap basis of accounting, under the modified accrual basis of accounting, what is the basis of accounting, basis of accounting, cash and accrual accounting, basis of accounting determines which of the following. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>BASIS OF ACCOUNTING- MEANING The basis of accounting is a set of rules that are followed by the accountant for preparing the financially reports like profit and loss account, balance sheet and cash flow statement. The basis of accounting tells about when and which transaction is to be recognized and how to record those transactions&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/basis-of-accounting\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;BASIS OF ACCOUNTING &#8211; CLEAR EXPLANATION&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":1913,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,11],"tags":[85,86,87],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1912"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=1912"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1912\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/1913"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=1912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=1912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=1912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}