@Priyanka93 ,let me try.
1.make distinction between capital and revenue.
2.Expense should match revenue in period.
Cash system is (think ) a diary written by Non Accountant.
Accrual System is “What should be ”
Say you didn't pay rent for December ,cash system will not record any thing but you know you stayed in house and incurred cost in December.
So in accrual you will pass JE
1. rent for Dec Dr $100
Rent payable Cr $100
So in cash system expense was Zero but should have been 100 and you took care in accrual by passing JE.
Another example
Say you paid rent for December (year 1 ) and January ( year 2 ) $200.
But actual rent for Year 1 ( only December rent ) should have been $100
accordingly you pass JE
Dr Rent in Advance 100 ( BS statement )
Dr Rent expense 100 ( IS )
Credit Cash 200
3rd example.
You bought an equipment for $6000 ,in cash system expense is $6000 but the life of equipment is 5 years .
So what should be expense for year 1 ? 12 months of usage charge of equipment.
Depreciation Dr ( year 1 ) $1200 ( IS )
Accumulated Depreciation $1200 ( BS )
Just keep in mind Accrual is true cost and revenue matching for period.
.