Dear Sir
I am little confused. When i have selected Accural then showing business in loss, and when selected Cash Basis then showing business in profit. What to do actually, where to keep selection Acural or Cash basis/
kindly suggest , we have to send data to CA for income tax purpose but totally confused what to do with this balance sheet.
Warm Regards
Laalchand
So consult with them, they are in the best position to advise based on your personal circumstances.
The choice of accrual or cash basis accounting does not depend on whether you show a profit or loss. The two methods are appropriate in different circumstances. See the Guide: Choose between accrual or cash basis accounting | Manager.
You need to first ask your accountant whether your business is registered as cash or accrual basis with your tax authorities.
If cash basis, then do your reports such as VAT return in Cash basis. I find keeping the summary page as accrual works better for me as some information is missing from the cash basis view although my business is registered as cash basis.