Question

Q.11 Distinguish Between the following:
(a) Cash Basis and Accrual Basis of Accounting.
(b) Trading Account and Manufacturing Account.​

Answer 1

Answer:

There are two methods for recording accounting transactions such as cash basis and accrual basis. The accrual basis and cash basis accounting are two different accounting methods. The main difference between the two methods is in the timing of transaction recordation. In aggregated over time, the results of these two methods are approximately the same.

Explanation:

**Accrual Basis and

Accrual Basis and Cash Basis Accounting**

1. As per cash basis of accounting, we record revenues on receipt of cash, and expenses on their payment. Cash basis of accounting does not recognize accounts receivable or accounts payable.

As per cash basis of accounting, we record revenues on receipt of cash, and expenses on their payment. Cash basis of accounting does not recognize accounts receivable or accounts payable.All transactions related to revenues, costs, assets, and liabilities are reflected in the accounts for the period in which actual receipts or actual payments are made.

***Accrual Basis Accounting***

1. As per accrual basis,

we record revenues and expenses when they accrue, regardless of the actual receipt or payment of the amount. This basis is more commonly in use than the cash basis.

we record revenues and expenses when they accrue, regardless of the actual receipt or payment of the amount. This basis is more commonly in use than the cash basis.The accrual basis provides a more realistic idea of income and expenses during a period of time. This method provides a long-term picture of the business that cash accounting cannot provide.

Answer 2

Answer:

already done....... . .