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Dr. Bela Phadke, a Physiotherapist in practice is maintaining her books on cash basis. Her accountant advised her to follow accrual basis of accounting instead of cash basis. Do you agree with the advice given by the accountant? Give reasons.

Asked by Topperlearning User 9th June 2016, 12:49 PM
Answered by Expert

No, I do not agree with the advice given by the accountant. Cash basis of accounting is more appropriate for Dr. Bela Phadke as she is a physiotherapist practitioner and receives fees immediately after giving her consultancy.

Answered by Expert 9th June 2016, 2:49 PM
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