ACCOUNTING ASSUMPTIONS •Money measurement concept: Every accounting transaction is major in terms of money. •Dual entity concept: As per this concept an accountant assume that business & businessman are two different entities. •Going-concern concept: According to this assumption while doing the accounting it is assumed that business will continue for fairly longer period of time. •Cost concept: This concept is applicable only for fixed assets accounting purpose it states that while computing the cost of fixed assets all the incidental expenditure for the acquisition of the assets should be added in cost fixed assets. •Dual-aspect concept: This is the fundamental accounting assumptionwhich state that every transaction has too folds effect positive or negative in accounts it is dr. & cr. •Periodicity concept: Every accounting is divided in smaller periods as per this concept. •Cost attach concept: While computing the revenue earned by the organization all the incidental expenditures required to earn such arevenue should be accounted for as per this concept . •Accrual concept: As per this concept revenue or expenditure should be accounted for only on the basis of the certainty of that revenuereceives or expenditure paid actual payment or receipts is irrelevant. •Legal aspect concept: When there is a conflict between laws & accounting account should follow law procedures first.
Posted on: Sun, 04 Aug 2013 12:17:01 +0000
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