What decides whether a receipt is relevant to the period of the accounts is the date on which the customer became liable for the cost of the goods or service received. This is often earlier than the date on which the customer paid the bill
Assessment period is the period of the profit and loss account
1.1.98 to 31.12.98.
1) Goods were sold on 18.12.97 for £200. Payment was
received on 24.2.98. This receipt is not relevant to the assessment
period and should not have been included in the profit and loss
account. Although not paid until 24.2.98 it should have been
included as a receipt at the point of sale, 18.12.97, and
represents income in the profit and loss account covering that
date, that is 1.1.97 to 31.12.97.
2) Goods to the value of £500 were sold on credit on
30.11.98. Payment was received on 15.1.99. Although received
outside the assessment period the money is
