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accrual concept doubt
Accountancy
When the income earned is Rs 50000 by selling goods, but cash received is only Rs 30000, so I will record that I have sold goods worth 50000, but at the end, how will I know that the person still should pay the remaining 20k Video Details ------------- Accounting - CA Foundation (New) Accounting Concepts, Principles And Conventions #3. Accounting Concepts - Part 2
Answers (2)
We will record it as below Assets : Debtors : 20,000 & Cash : 30,000 in balance sheet. Sale entry will be Dr. Customer - 50,000 Cr. Sales - 50,000 Then when amount is received Dr. Cash 30,000 Cr. Customer 30,000 So balance will be shown in balance sheet. You will understand when you learn ledgers.
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