Chapter 19, Problem 19.5.1E

To determine

Concept Introduction:

Accrual basis of Accounting:

Accrual basis of accounting means record income and expenses in same year in which these are incurred or gained irrespective of the year in which payment is made or income is received. Sometimes we incur some expenses in current year but paid in future year and we gain some income in this year but we received in future year. In that case on accrual basis of accounting we accrue income and expenses in same year in which these are accrued.

:

Which basis of accounting should a voluntary health and welfare organisation use.