Question

An enterprise prepares its accounts under the accrual basis. Salaries amounting to Rs.10,000 for the month of March,2013 were not paid. The owner did not want to account it in the books of accounts on the ground that the amount was not paid. The enterprise closes its books of accounts
on 31st March every year. Is he correct?

Answer 1

No it is a violation of Accrual principal an expense should be recognized when it is incurred and not when it is paid. But income should not be recognized.