Question

Q-1 Explain the following:
a) Cash and mercantile system of accounting.
b) Cash book, purchases and sales books
c) Personal accounts and impersonal accounts
d) Balancing the accounts
e) Classificatic n of errors​

Answer 1

Answer:

a.Accrual system of Accounting is also known as the mercantile system of accounting wherein the transactions are recognized and recorded as and when they take place. Under the accrual accounting method, the revenue is recorded when it is actually earned, and the expenses are reported when they are incurred.