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Mercantile Law method is the accrual method.
In the accrual basis of Accounting, the income whether received or not but has been earned or accrued during the period forms part of the total income of that period
For eg,sales made on credit will be included in the total sales of the period irrespective of the fact when cash is actually realised.
eg. rent due to the landlord but not paid will be taken as an expense for the perriod when it is due and not in the period when it is paid.
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