Graded Discussion Board
FINANCIAL ACCOUNTING (MGT101)
This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on November 27, 2013 for discussion and last date for posting your discussion will be November 29, 2013.
Topic/Area for Discussion
“Cash accounting Vs. Accrual accounting system”
This Graded Discussion Board will cover first 12 lessons.
For acquiring the relevant knowledge, do not rely only on handouts but also watch the course video lectures and read additional material available online or in any other mode.
bro thori si confusion aur door kar do. in second scenario Mr.Zahid did pay but Mr. Farhan recorded this sale as an income during March 2013 on its receipt.
Mr.Farhan na apni sale ko as a income record ki ha jab ka us ko payment hui hi nahi.
Sir Please again reply.
please sab ghor se suno and solve your gdb. dont be confused. it is so easy.
1. Mr. Ahsan is following accrual accounting system.Because oss ne osi date par transaction record kar lia. paisay lene ya dene se os ko koi gharaz nahe he.
2. Mr. Farhan is following cash accounting system. because oss ne february me goods sale ki hain orr onhain record tab kar raha he jab oss ko CASH milti he. yani march me.
and 2nd question i will prefer accrual accounting system.
100% per gharaz is leay nehi kar milna tu hai na paisa (just kiddin)
for more tip
Mr. Ahsan, purchased its a incurred expense and he paid after 40 days. so its AAS
Mr. Farhan, sold machinery in February and recorded this sale as income during March 2013 when he actually received the payment
second mein commercial companies cash accounting tu kar nehi sakti tu its AAS you should know why
Revenues are recorded when they are received, which may be before or after they are earned.
Expenses are recorded when they are paid, which may be before or after they are incurred.
Financial statements reflect revenues and expenses based on when transactions were entered rather than when revenues were earned or expenses incurred.
No method of tracking partial payments is available.
Revenues are recorded when they are earned, which may be before or after they are received.
Expenses are recorded when they are incurred, which may be before or after they are paid.
Financial statements match revenues to the expenses incurred in earning them, and more accurately reflect the results of operations.
Revenues and expenses are recorded in full, even though partial payments may be made over extended time periods.
yar mein tu gdb ma apne sir se abi pocha hai
mr ahsan follow cash accounting system farhan accrual system
second ans hai accrual system ab gdb solve kro jaldi sey
In this scenario, MR: Ahsan is following cash accounting system for maintaining his business record.
While, MR: Farhan is using accrual accounting technique for controlling his business.
I suggest accrual accounting system for commercial organization because of certain reasons:
pehla accrual ha aur dusra cash accounting system ha
2nd accrual system in pakistan
solve it jaldy