REVISION EXERCISE -3 THEORY BASE OF ACCOUNTING (ACCOUNTING PRINCIPLES)ASSIGNMENT # 3
2nd MAY,2020 DAY 5 11B 1st & 11A 6th period PLEASE MARK YOUR ATTENDANCE BY CLICKING ON THE LINK BELOW AND FILLING UP YOUR DETAILS: 11A ATTENDANCE LINK 11B ATTENDANCE LINK Theory Base of Accounting Principles and Concepts of Accounting: Learning Objectives: A Quick Recap of: Principles & Concepts of Accounting. • Business Entity Concept • Money Measurement Concept • Prudence or Conservatism • Dual Aspect or Duality • Matching Concept • Historical Cost Concept 1.Business Entity Concept A business is a separate entity from its owners. This basically means that personal transactions of the owners of the business are to be treated separately from the business transactions. Examples Mr. A, a lawyer has 5 rooms in his house, which he has rented for Rs 50,000 per month. He decided to start his own practice for which he decided to use one of the rooms. According to the business entity concept, only 1/5th of the rent i.e. Rs 10, 000...