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प्रश्न
Justify the following:
Every transaction is recorded in at least three accounts.
“Every transaction is recorded in at least three accounts.” Justify this statement.
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उत्तर
Double-entry accounting involves debiting and crediting at least two accounts for each transaction. This approach guarantees the accounting equation (Assets = Liabilities + Equity) is balanced. In some circumstances, a single transaction may affect many accounts. When a business acquires merchandise on credit, it impacts the merchandise account, Accounts Payable (creditor), and Cash or Bank account (if payment is paid in part or full). To preserve the accounting equation and ensure accuracy, financial transactions are normally documented in at least three accounts.
संबंधित प्रश्न
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Explain the concept of The Dual Aspect Principle.
______ is the language of business.
According to this principle, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.
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With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money. Justify either for or against.
“The capital provided by the owner is a liability of the firm.” Answer with reference to the concept of Accounting.
Explain Accounting Period Concept.
Explain the revenue principle.
Explain the realisation principle.
