Question

If a business vendor receives an order from a customer for a custom made machine in the year 2013 and the vendor designed , manufactured and supplied the machine for rupees 1,00,000 in the year 2014 and then the customer makes the payment in the year 2015, which accounting concept will be used in this scenario. Realisation concept or Accrual concept ? And in which year the revenue will be recognized in the books of accounts

Answer 1

Answer:

Accrual Concept it will be recognised in books of accounts in 2014(credit sales)