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accruals vs cash basis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › accruals vs cash basis

  • This topic has 3 replies, 4 voices, and was last updated 3 years ago by JillyB.
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  • May 14, 2020 at 8:30 am #570783
    jean989
    Participant
    • Topics: 29
    • Replies: 8
    • ☆

    Dear Sir,

    Could you explain what it meant by quarterly in advance in arrears in relation to property income

    thanks

    May 14, 2020 at 11:30 am #570810
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    If the rental is quarterly in advance for say the quarter to 31 March 2020, then the rental should be paid to the property owner by 1 January 2020, whereas in arrears by 31 March 2020

    November 22, 2022 at 1:41 pm #672059
    Purayag…
    Participant
    • Topics: 0
    • Replies: 1
    • ☆

    what is the difference between the accrual basis and the cash basis in property income?

    November 24, 2022 at 11:07 am #672407
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    cash basis is a record of actual money in and actual expenses paid during the accounting period of the property
    accruals basis is not
    Read chapter 3 of the TX manual

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