People who manipulate incomes in order to save tax show income accrued and received as creditors and subsequently transfer such creditors to Income A/c as Sales or Receipts from rendering of services. How such manipulation can be detected?
first of all, SA 510 is not applicable to all assignments. it is only for assignments where no audit was conducted or some one else conducted audit last year.
yes people may use this tactic to evade taxes , there clause 16 form 3cd which is used in tax audit, where it is reported income not credited to P&L
if check JVs in tally we will be able to detect such transactions