Explain cash basis & accrual basis.

The  cash  basis is  a method  of recording  accounting  transactions  for revenue and   expenses  only when the  corresponding  cash is received or payments are made. Thus, you record revenue only when a customer pays for a billed product or service, and you record a payable only when it is paid by the company.

Under the accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash is paid. The result of accrual accounting is an income statement that better measures the profitability of a company during a specific time period
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cash basis
1-only the cash transaction are recorded ,credit transactions are not recorded.
2-In cash basis revived income in advance , outstanding,prepaid expenses, these things are not recorded.
3-This basis adopted by the professional people like doctor,C.A.
4-This basis does not recognized under the company ACT 2013.
1-ALL transaction are recorded whether cash or not.
2-in ACCURAL basis income received in advance, prepaid expenses ..these things are recorded.
3-This basis is adopted by the business enterprises for earning profit in business.
4-This basis is recognized under the company ACT 2013.
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Sorry I dont know this answer.....
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But i think vishwanath and nishi answer is correct
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Debit note
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Cash basis are which we record the cash account not the credit card and in accrual basis are which in which record all credit and cash payment
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