Section 20 in The Andhra Pradesh Municipalities (Preparation of Accounts) Rules, 2017
20. Accounting of income on accrual basis.
(1)All items of revenue which fulfill the following criteria shall generally be taken as income on accrual basis(a)The income is measurable, ie., when the income is earned or the right to receive it is established.(b)The amount due is determined or determinable.(c)There is no significant uncertainty about the realization.(2)In such cases, a statement of bills raised/demand raised/income accrued shall be furnished by the concerned section to the accounts section at the following frequency:(a)In respect of property tax, water charges (tap rate basis), fees, leases and rents - annually, at the beginning of the year, for the whole year's income.(b)In respect of new assessments/increase under property tax - on monthly basis when assessment is newly made or tax increased.(c)In respect of other incomes, as and when they become due for collection.(3)The Statement of Bills raised shall be maintained in Form No.22(4)The Account section shall, based on this intimation, pass a Journal Voucher and accrue the income by debit to its 'Receivable Account'.(5)All collections in respect of accrual income shall be credited to the same 'Receivable Account' as and when they are received.
