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Why is it appropriate to use cash basis accounting in your personal life but not in...

Why is it appropriate to use cash basis accounting in your personal life but not in the business world?  

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Cash basis of accounting means recording receipts and payments on the basis of actual receipt and payment of cash. In personal life the cash basis is more appropriate because in personal life we are more intrested inin knowing the exact position as on date i.e., actual cash in hand, since, in personal life the cash is the major asset used by a person in routine life. In case of business there is a concept of going concern, so all the losses are pre booked and income not received but sale made is recorded on the basis of accrual system. But in personal life such realisation is not appropriate.

In business due to going concern we have to even record credit sales and credit purchase, but in personal life no such concept runs thus cash basis is more easy and thus more appropriate for the personal life.

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