{"id":5782,"date":"2022-07-17T06:03:50","date_gmt":"2022-07-17T06:03:50","guid":{"rendered":"https:\/\/commerceiets.com\/?p=5782"},"modified":"2022-07-17T06:03:50","modified_gmt":"2022-07-17T06:03:50","slug":"accounting-concepts-and-conventions-notes","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/","title":{"rendered":"ACCOUNTING CONCEPTS AND CONVENTIONS NOTES"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#QUESTION_Discuss_important_Accounting_Concepts\" title=\"QUESTION: Discuss important Accounting Concepts?\">QUESTION: Discuss important Accounting Concepts?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#GOING_CONCERN_CONCEPT\" title=\"GOING CONCERN CONCEPT\">GOING CONCERN CONCEPT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#CONSISTENCY_CONCEPT\" title=\"CONSISTENCY CONCEPT\">CONSISTENCY CONCEPT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#ACCRUAL_CONCEPT\" title=\"ACCRUAL CONCEPT\">ACCRUAL CONCEPT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#BUSINESS_ENTITY_CONCEPT\" title=\"BUSINESS ENTITY CONCEPT\">BUSINESS ENTITY CONCEPT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#MONEY_MEASUREMENT_CONCEPT\" title=\"MONEY MEASUREMENT CONCEPT\">MONEY MEASUREMENT CONCEPT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#ACCOUNTING_PERIOD_CONCEPT\" title=\"ACCOUNTING PERIOD CONCEPT\">ACCOUNTING PERIOD CONCEPT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#HISTORICAL_COST_CONCEPT_OR_COST_CONCEPT\" title=\"HISTORICAL COST CONCEPT OR COST CONCEPT\">HISTORICAL COST CONCEPT OR COST CONCEPT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#MATCHING_CONCEPT\" title=\"MATCHING CONCEPT\">MATCHING CONCEPT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#DUAL_ASPECT_CONCEPT\" title=\"DUAL ASPECT CONCEPT\">DUAL ASPECT CONCEPT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/#REVENUE_RECOGNITION_OR_REVENUE_REALISATION_CONCEPT\" title=\"REVENUE RECOGNITION OR REVENUE REALISATION CONCEPT\">REVENUE RECOGNITION OR REVENUE REALISATION CONCEPT<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"QUESTION_Discuss_important_Accounting_Concepts\"><\/span><strong>QUESTION: Discuss important Accounting Concepts?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\"><a aria-label=\"Accounting (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accounting<\/a> Concepts are the foundation of the accounting. These concepts are the assumptions which are generally accepted and followed while performing the recording of transactions and preparation of final accounts. The accounting concepts help in conveying the financial information in a same meaning to the various users of the accounting. By following the concepts, one can select the appropriate methods to be used in particular situation.<\/p>\n\n\n\n<p>The various accounting concepts are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/Slide2-2.jpg\" alt=\"ACCOUNTING CONCEPTS AND CONVENTIONS NOTES\" class=\"wp-image-1960\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/Slide2-2.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/Slide2-2-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/Slide2-2-768x576.jpg 768w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><figcaption>ACCOUNTING CONCEPTS AND CONVENTIONS NOTES<\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"going-concern-concept\"><span class=\"ez-toc-section\" id=\"GOING_CONCERN_CONCEPT\"><\/span>GOING CONCERN CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">As per this concept, it is assumed that business will\ncontinue to operate for the indefinite period of time in future. The\ntransactions are recorded in the books of accounts assuming that the business\nis a continuing enterprise.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF GOING CONCERN CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>Assets are to be recorded at a cost price or\noriginal price.<\/li><li>Depreciation is to be provided on assets.<\/li><li>Identification of short term assets or long term\nassets and long term liabilities or short term liabilities as different.<\/li><li>Because of this concept, the outside parties\nenter into long term contracts with the enterprise, give loans and purchase the\ndebentures and shares of the enterprise.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE:<\/strong> The prepaid expenses of the firm which have no realizable value are recorded in the books of accounts of the business enterprise as benefit of such expenses will be received in the future.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"consistency-concept\"><span class=\"ez-toc-section\" id=\"CONSISTENCY_CONCEPT\"><\/span>CONSISTENCY CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The consistency concept states that the principles, methods\nand techniques of accounting should be used uniformly over the years. In simple\nwords, the method used in one year should be applied similarly in next year and\nin coming future years also.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">But this does not mean that the improved modes and\ntechniques of accounting cannot be adopted. It can be adopted by the accountants\nprovided that the changes should be communicated to the users by the way of\npresent footnotes or explanatory notes accompanying the final accounts.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF CONSISTENCY CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>The financial statements prepared for an\naccounting year is consistent to the financial statements prepared in the past.<\/li><li>The following of this concept makes the final\naccounts comparable.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE: <\/strong>A firm can choose any one of the several methods of depreciation, i.e., straight line method, written down method or any other method. But it is expected that the method once chosen will be followed consistently year after year. Likewise, the method of stock valuation or make provision for likely bad debts should remain consistent with the previous years otherwise the decisions taken on the basis of accounts will be misleading.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"accrual-concept\"><span class=\"ez-toc-section\" id=\"ACCRUAL_CONCEPT\"><\/span>ACCRUAL CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Accrual concept states that all the accounting records are\nto maintained by taking into consideration the current year incomes and\nexpenditures. It states that income and expenditure of a particular year is to\nbe recorded in the book of accounts and it is immaterial whether the amount for\nthe same is paid or received or not. It means:<\/p>\n\n\n\n<ul><li><strong>Record\nthe income of the year whether is it received or not.<\/strong><\/li><li><strong>Record\nthe expense of the year whether it is paid or not.<\/strong><\/li><\/ul>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF ACCRUAL CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>It is similar to matching concept.<\/li><li>It truly depicts the accurate profit and loss of\nthe firm for a year.<\/li><li>It gives rise to the adjustments like:<ul><li>Prepaid Expenses<\/li><\/ul><ul><li>Accrued Incomes<\/li><\/ul><ul><li>Income received in advance<\/li><\/ul><ul><li>Outstanding Expenses<\/li><\/ul><\/li><li>It differentiates the cash transactions and\ncredit transactions.<\/li><li>It shows the true financial position of the\nconcern.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE: <\/strong>Credit purchase of goods, Rent paid in advance for the next year, Interest due but not yet received.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"business-entity-concept\"><span class=\"ez-toc-section\" id=\"BUSINESS_ENTITY_CONCEPT\"><\/span>BUSINESS ENTITY CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">According to the business entity concept, the owner and\nbusiness are considered as separate entities. It states that the owner has a\nseparate legal entity and the business house has separate legal entity. This\nconcept is applicable to Joint Stock companies. Because of this, the personal\nproperty, personal investments, personal income and expenditure of the owner is\nkept out of the books of accounts of the business.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF BUSINESS ENTITY CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>The books of accounts are maintained from the\nbusiness point of view.<\/li><li>The owner of the business is the creditor to the\nbusiness.<\/li><li>The capital invested by the owner is the\ninternal liability for the business.<\/li><li>The interest on capital is considered as an\nincome for the business that increases its profits.<\/li><li>The interest on drawings is considered as an expense\nfor the business that decreases its profits.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE:<\/strong> The goods used form the stock of the business for business purposes are treated as business expenditure but similar goods use by the proprietor i.e. owner for his personal use are treated as his drawings.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"money-measurement-concept\"><span class=\"ez-toc-section\" id=\"MONEY_MEASUREMENT_CONCEPT\"><\/span>MONEY MEASUREMENT CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Money is the common denominator to measure all the\ntransactions and events. The money measurement concept states that all those\ntransactions are recorded in the books of accounts which can be expressed in\nthe terms of money. In India the common money denominator is \u20b9 (Rupees).<\/p>\n\n\n\n<p class=\"has-medium-font-size\">It means no qualitative information should be recorded in\nthe books of accounts. It is immaterial how important that information is.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF MONEY MEASUREMENT CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>Only monetary transactions and events are\nrecorded in the books of accounts.<\/li><li>No qualitative information is recorded in the\nbooks of accounts.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE: <\/strong>The accountants will not record the strike of the employees as it is a qualitative aspect and does not involve any kind of monetary figure.&nbsp; However the strike of the employees hampers the production.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Similarly, the purchase of 5 chairs and a table will not be\nrecorded in the books of accounts instead purchase of 5 chairs for \u20b91,000 and a\nchair for \u20b91,500 will be recorded.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"accounting-period-concept\"><span class=\"ez-toc-section\" id=\"ACCOUNTING_PERIOD_CONCEPT\"><\/span>ACCOUNTING PERIOD CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The going concern concept states that business will continue\nfor an indefinite period of time. The accounting period concept states that to\ndetermine the profitability, solvency and liquidity position of the firm at the\nregular intervals, the life of the firm should be divided into a time period of\n12 months i.e. a year. <\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF ACCOUNTING PERIOD CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>The accounts are prepared for a year starting\nfrom 1<sup>st<\/sup> April ending 31<sup>st<\/sup> March.<\/li><li>The financial position can be determined at\nregular intervals. <\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"historical-cost-concept-or-cost-concept\"><span class=\"ez-toc-section\" id=\"HISTORICAL_COST_CONCEPT_OR_COST_CONCEPT\"><\/span>HISTORICAL COST CONCEPT OR COST CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">According to this concept, the assets should be recorded at\nthe cost of its purchase or acquisition. The cost of asset is known as\nHistorical cost. But this does not mean that same value should be appeared\nagain and again in the balance sheet. The value of the asset is reduced by the\namount of depreciation provided.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF COST CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>The asset is shown at the cost less\ndepreciation.<\/li><li>No asset is recorded if nothing is paid for it\nlike goodwill will not be recorded in the books of accounts if nothing is paid\nfor it.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE:<\/strong> If the cost of the machinery purchased is \u20b91,00,000 and its market value is \u20b91,05,000, the machinery will be recorded at the figure of \u20b91,00,000 only as per the historical cost concept.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"matching-concept\"><span class=\"ez-toc-section\" id=\"MATCHING_CONCEPT\"><\/span>MATCHING CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">According to the matching concept, the revenues or incomes\nof a particular year is compared with the expenses of that particular year. For\nmatching the costs with the revenues, the revenues should be recognized as well\nas costs incurred to generate these revenues should also be recognized.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF MATCHING CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>Only current year incomes and expenditure is\ntaken into account,<\/li><li>The current year profitability and financial\nposition can be ascertained with accuracy.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE:<\/strong> The incomes are matched against the expenses to find out the net profit or loss of the business.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The assets are matched against the liabilities to find out\nthe solvency position of the business. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"dual-aspect-concept\"><span class=\"ez-toc-section\" id=\"DUAL_ASPECT_CONCEPT\"><\/span>DUAL ASPECT CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">According to this concept, every business transaction has two aspects: <strong>DEBIT<\/strong> or <strong>CREDIT<\/strong>. It means any transaction will affect at least two accounts. The effect on two accounts will be the same.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF DUAL ASPECT CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>For every Debit, there is corresponding Credit.<\/li><li>The total of both sides of balance sheet should\nbe equal.<\/li><li>The system of accounting based&nbsp;&nbsp; on this concept is called \u2018Double Entry\nsystem.\u2019<\/li><li>The Accounting equation followed is:<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>ASSETS= CAPITAL + LIABILITIES<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE: <\/strong>X started business with \u20b95,00,000 in cash that includes \u20b91,00,000 as loan. The equation will be:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASSETS= LIABILITIES + CAPITAL<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,00,000= 1,00,000+ 4,00,000 <\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"revenue-recognition-or-revenue-realisation-concept\"><span class=\"ez-toc-section\" id=\"REVENUE_RECOGNITION_OR_REVENUE_REALISATION_CONCEPT\"><\/span>REVENUE RECOGNITION OR REVENUE REALISATION CONCEPT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">According to this concept, the revenue is recognized when\nthe transaction is entered into. This concept states that no anticipated\nrevenue should be taken into account. The revenue is considered as realized\nwhen we make a sale or earned the money by giving services. It does not matter\nwhether the money is received for the same or not.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>IMPLICATIONS OF REVENUE RECOGNITION CONCEPT<\/strong><\/p>\n\n\n\n<ul><li>The revenue recognition concept follows the convention of conservatism.<\/li><li>The accountant must not record the anticipated profits.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting\/\"><strong>Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/non-profit-organisation\/\"><strong>Non profit organisation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation\/\"><strong>Depreciation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liquidity-ratios-types\/\"><strong>Liquidity ratios<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/nature-of-accounting\/\"><strong>Nature of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/receipt-and-payment-account-pdf\/\"><strong>Receipts and Payments Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation-accounting\/\"><strong>Depreciation Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/acid-test-ratio-formula\/\"><strong>Acid Test Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/benefits-of-accounting\/\"><strong>Benefits of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/hire-purchase-accounting-notes-pdf\/\"><strong>Hire Purchase Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cash-ratio\/\"><strong>Cash Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-cost-accounting-and-financial-accounting\/\"><strong>Difference between cost accounting and financial accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\"><strong>Financial accounting, cost accounting and management accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-hire-purchase-and-instalment\/\"><strong>Difference between hire purchase and instalment system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/financial-ratio-analysis\/\"><strong>Financial ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-transaction-and-event\/\"><strong>Difference between transaction and event<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/transactions\/\"><strong>Transactions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/users-of-accounting\/\"><strong>Users of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/current-ratio-formula\/\"><strong>Ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/limitations-of-accounting-2\/\"><strong>Limitation of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-expenditure\/\"><strong>Capital Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/instalment-system\/\"><strong>Instalment System<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-consignment-and-sale\/\"><strong>Difference between consignment and sale<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/book-keeping\/\"><strong>Book Keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-expenditure\/\"><strong>Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Reserves Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-normal-and-abnormal-loss\/\"><strong>Abnormal loss vs normal loss in consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accountancy\/\"><strong>Accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-expenditure-and-revenue-expenditure\/\"><strong>Difference between capital and revenue expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Provisions&nbsp;<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/treatment-of-loss-on-consignment\/\"><strong>Treatment of loss on consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting as science or an art<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-equation\/\"><strong>Accounting Equation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/single-entry-system-in-accounting\/\"><strong>Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-treatment-of-consignment\/\"><strong>Accounting treatment of consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book Keeping vs accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/deferred-revenue-expenditure\/\"><strong>Deferred Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/statement-of-affairs-and-balance-sheet-difference\/\"><strong>Difference between statement of affairs and balance sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-joint-venture-and-consignment\/\"><strong>Joint venture vs consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book keeping vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-receipt\/\"><strong>Capital receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/ifrs\/\"><strong>IFRS<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/departmental-accounting\/\"><strong>Departmental Accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-receipt\/\"><strong>Revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/balance-sheet\/\"><strong>Balance Sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-departmental-accounting\/\"><strong>Methods of departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/basis-of-accounting\/\"><strong>Basis of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-and-revenue-receipt\/\"><strong>Difference between capital and revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/profit-and-loss-account\/\"><strong>Profit and loss Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-of-expenses-in-departmental-accounting\/\"><strong>Allocation of expenses in departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/branches-of-accounting\/\"><strong>Branches of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Difference between accounting concepts and conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/trading-account\/\"><strong>Trading Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-departmental-transfers\/\"><strong>Inter-departmental transfers<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cash-and-mercantile-system-of-accounting\/\"><strong>Cash and mercantile system of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-standards\/\"><strong>Accounting Standards<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/voyage-account\/\"><strong>Voyage Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/different-types-of-branches\/\"><strong>Different types of branches<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-principles\/\"><strong>Accounting Principles<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-accounting\/\"><strong>Objectives of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-for-incomplete-voyage\/\"><strong>Accounting for Incomplete Voyage<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-departmental-and-branch-accounting\/\"><strong>Departmental vs Branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/golden-rules-of-accounting\/\"><strong>Golden ru\nles of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-accounting\/\"><strong>Process of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-venture\/\"><strong>Joint venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/\"><strong>Methods of branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/double-entry-system-of-accounting\/\"><strong>Double entry system of book keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-joint-venture-and-partnership\/\"><strong>Joint Venture Vs Partnership<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incorporation-of-branch-trial-balance\/\"><strong>Incorporation of branch trial balance<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-double-single-entry-system\/\"><strong>Double entry vs Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Accounting Concepts vs Accounting conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-recording-transactions-in-joint-venture\/\"><strong>Methods of recording transactions in Joint Venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/garner-vs-murray-rule\/\"><strong>Garner VS Murray Rule<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/history-of-accounting-pdf\/\"><strong>History of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-provisions-and-reserves\/\"><strong>Difference between provisions and reserves<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consignment\/\"><strong>Consignment<\/strong><\/a><\/td><td><\/td><\/tr><tr><td><\/td><td><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>QUESTION: Discuss important Accounting Concepts? Accounting Concepts are the foundation of the accounting. These concepts are the assumptions which are generally accepted and followed while performing the recording of transactions and preparation of final accounts. The accounting concepts help in conveying the financial information in a same meaning to the various users of the accounting&#8230;.<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/accounting-concepts-and-conventions-notes\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;ACCOUNTING CONCEPTS AND CONVENTIONS NOTES&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":5783,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[253],"tags":[107,108,284,285,286,287,288,289,290,291,292,293],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/5782"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=5782"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/5782\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/5783"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=5782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=5782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=5782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}