how cash basis and accrual basis of accounting works?

Basis of accounting 

1. Accrual basis of accounting:

 Accrual basis of accounting is a method of recording transactions by which revenue, cost, assets and liabilities are reflected in the accounts for the period in which they accrue. The basis includes consideration relating to deferrals, allocations, depreciation and amortisation. It is also called mercantile basis of accounting. 

2. Cash basis of accounting: 

cash basis of accounting is a method of recording transactions by which revenue, cost, assets and liabilities are reflected in the accounts for the period in which actual receipts or actual payments are made. 

3. Hybrid or mixed basis: 

under the hybrid system of accounting, incomes are recognised as in cash basis of accounting and expenses are recorded on accrual basis