Question

pls answer this


An enterprise prepares its amount under the accrual basis. salaries amounting to Rs 10000 for the month of march 2018 were not paid. The owner did not want to accounts on the ground that the amount was not paid. The enterprise closes its books of account on 31st March every year. Is he correct? (explain) ​

Answer 1

Answer:

He is incorrect.

Explanation:

As he follow accrual basis, he has to record expenditure incurred of the year whether it is paid or not.