A sports shop owner bought cricket bats in May for which he needs to pay in June. Under accrual basis of accounting, this is recorded in the month of

May

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June

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April

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December

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Solution

The correct option is A May
Under accrual basis of accounting, transactions are recorded as and when it happen irrespective of whether cash is paid or received. So in this case, it is recorded in the month of May as purchase of cricket bats happened in that month.

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A sports shop owner bought cricket bats in May for which he needs to pay in June. Under accrual basis of accounting, this is recorded in the month of

The correct option is A MayUnder accrual basis of accounting, transactions are recorded as and when it happen irrespective of whether cash is paid or received. So in this case, it is recorded in the month of May as purchase of cricket bats happened in that month.

The correct option is A May
Under accrual basis of accounting, transactions are recorded as and when it happen irrespective of whether cash is paid or received. So in this case, it is recorded in the month of May as purchase of cricket bats happened in that month.