Accounting Concept- Accounting Period Concept

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We talk about Accounting Period Concept in brief with the help of Motion Graphics.

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If you have any questions- Drop em into the comment section and I will answer them.

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As per definition you provided, this is simply a timestamp attached to transactions and journal entries. But what I am looking for is a bit different. Companies pay their employees monthly. Now for October they will pay salaries on (let's say) November 5 but as per monthly accounting period books would be closed on October 31. How can we tackle this issue and how would accounting period would fit in this scenario?

shahzad
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bro so for each company have to strictly follow 1 year, 6months, 3months or 1 month according to their rules? lets say a pvt. ltd. has a accounting period of 6months so in that case they will see the transactions like rent, salaries, etc. in that 6months like july to dec.?

austindcosta