What is difference between cash basis and accrual basis balance sheet?

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  • Oct 27th, 2011

Cash basis accounting is when record in books once we receive cash in hand/bank or when we make payment in cash or through bank but accrual basis once we accure the income we record in the book irrespective of whether we received or not.

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  • Nov 23rd, 2014

Cash basis = Received / paid cash on the spot (only cash transactions)

Accrual basis includes cash as well as on credit. (receivable and payable)

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