Answer Posted / samir sharma

A cash system of accounting is a system of accounting in
which all transactions are recorded only when actual cash
is received or paid. On the other hand in Mercantile system
of accounting the transactions are recorded on due basis
ie. when a transaction arises.
Eg. when sale is made on credit, in cash system of
accounting no transactions will be recorded however under
mercantile system of accounting the transactions will be
recorded.

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