AS 1

Accountancy

X & Co. a partnership firm has prepared its books of accounts on cash basis. Comment. Will your answer change, if the entity is a company i.e.,X Ltd.

Mahendar Peraboina

CA Inter

★ 700

31-Oct-22 11:53

518

Answers (4)

Company should maintain its books of accounts only in accrual basis.

Balaji K

Qualified CA

★ 7K+

31-Oct-22 13:05

Basic Accounting Assumptions Going Concern, Consistency & Accural. Books of accounts are assumed to be prepared following these assumptions only. If going concern is not followed the various item treatments varies, if consistency is not followed then itâ??s should be due to better presentation, required by any statue or due to change in accounting standards or policy. But the books of accounts should always be prepared using accural concept.

Swetha S

CA Inter

★ 15K+

31-Oct-22 13:26

A partnership firm is not required to comply with AS. However, if it has to be audited or certified by a CA, then compliance would be necessary.

CA Suraj Lakhotia

Admin

02-Nov-22 08:59

https://youtu.be/SBz6fh6rFJI

CA Suraj Lakhotia

Admin

02-Nov-22 08:59

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