Accounting Concepts and Principles

1. Name of the teacher : JINU L
Subject : Accountancy
Unit : Theory Base of Accounting
Topic : Accounting Concepts
&
Accounting Principles

2. Basic Assumptions on
which the accounting
system is based.

3. Separate existence between business and proprietor
Business Man V/s
Business

4. Business will last for a long time

5. Transactions involving money or money’s
worth will be recorded in account books
INR

6. The period of interval for
which accounts are prepared

7. General law or rule adopted as
a guide to action

8. Revenue results out of sale of
goods and services

9. Financial Statements must be verified
by some objective evidence

10. Expenses and Revenue
should match same
accounting period

11. All material facts should be disclosed

12. Every business transactions has dual effect
Debit
Credit

13. Transactions should
be recorded at their
acquisition cost