CA Inter doubt
In PGBP when to use indirect method and direct method
Asked by YASH1 Jul 2025686 views
4 answers
YASH · 1 Jul 2025
@Pushan @harsh @minu thank you
Minu · 1 Jul 2025
When receipt and payment is given then use direct method but when profit and loss is given use indirect method
HARSH · 1 Jul 2025
It's your choice, unless ques specify
Pushan · 1 Jul 2025
when the question gives you a receipts and payments account, or just a list of all the receipts and payments in the form of a trial balance, etc, you use direct method, whereas if the question provides a profit and loss accunt, you use indirect method. hope it helps
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