Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningRecording income and expenses when they are earned or incurred, not when cash moves.
Relevant ActCompanies Act, 2013
Section / ruleSection 128(1)
Technical meaning
Basis of accounting where transactions are recognised when they occur; mandatory for companies.
Practical example
An invoice raised in March is income for March even if paid in April.
Related terms
Official reference
Companies Act, 2013, Section 128(1)
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