Question

Rent for the month of march 2019 is not paid. Under which accounting concept it should be recorded as expense for the year ending 31 march 2019

plz give answer in two to three lines ​

Answer 1

Answer:

Here is your Answer

Explanation:

Accorfing to Accrual Concept,

As according to this basic concept . Revenue is recognized when earned, and expenses are recognized when assets are consumed.

Answer 2

Answer: Rent for the month of march 2019 is paid should be recorded as an expense for the year ending 31 march 2019 under Accrual Concept.

Explanation:

There are basically two basis of recording transactions in accounting:

1) Cash Basis:
The cash basis of accounting refers to a significant accounting concept in which revenues and expenses are recognized and recorded when cash is received or paid out.

2) Accrual Basis:
The accrual basis of accounting says that income is recognized when the revenue is earned, and expenses are recorded at the time they are incurred regardless of whether cash is received or paid.
Generally, every organization follows accrual basis of accounting due to its worldwide acceptability.

Thus, according to the question Rent for the month of march 2019 not paid should be recorded as an expense for the year ending 31 march 2019 under Accrual Concept.

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