07-23-2010, 03:23 PM
Dear,
There are two basis, Cash basis of accounting vs Accrual basis, in cash basis of accounting there will be no receivable and no payable you will account for only the amount received during the financial year and the amount paid during that year.
In accrual basis of accounting all of the invoices to customers issued whether or not amount is received will be treated as sales and all of invoices of supplier whether or not amount is actually received will be treated as purchases.
There are two basis, Cash basis of accounting vs Accrual basis, in cash basis of accounting there will be no receivable and no payable you will account for only the amount received during the financial year and the amount paid during that year.
In accrual basis of accounting all of the invoices to customers issued whether or not amount is received will be treated as sales and all of invoices of supplier whether or not amount is actually received will be treated as purchases.
