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In India there is basic rule for driving, according to rule everyone should walk or drive on left
hand side of the road. It helps in smooth flow of traffic. Similarly there are certain rules that an
accountant should follow while recording business transactions and preparing accounts. These
can be termed as accounting concept. It can be said that
Principles which work as the basis of recording of business transactions and preparing
accounts
Main objective is to maintain uniformity and consistency in accounting records. These concepts
constitute very basis of accounting. All the concepts have been developed over years from
experience and thus they are universally accepted rules. Following are various accounting
concepts that have been discussed in detail.
Realization concept
Accrual concept
Matching concept
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5/21/2018----Meaning and Business Entity Concept- Translation in Hindi, Kannada, Malayalam, Marathi, Punjabi, Sindhi, Sindhi, Tamil, Telgu -
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Business enterprise and owners are two separate independent entities, assume by this concept
for accounting. So transactions for both are assumes separate. Any expenses incurred by owner
for him or his family from business will be considered as expenses and it will be shown as
drawings.
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5/21/2018----Meaning and Business Entity Concept- Translation in Hindi, Kannada, Malayalam, Marathi, Punjabi, Sindhi, Sindhi, Tamil, Telgu -
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It facilitates recording of business transactions from business point of view.
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