goods withdrawn by the proprietor for own use have not been recorded in the books of accounts. which accounting principle is not followed?

Business Entity Concept has been violated here because in accounting both owner and business are regarded as distinct from each other. All the transactions are to be recorded from the view point of the business. Thus the goods withdrawn by proprietor for personal use are to be recorded as drawings from the business. Here, we assumed that the goods so withdrawn must have been treated as consumed by the business itself.
Otherwise, we can say principle of full disclosure has been violated as complete information is not available from the accounting records of the business.

  • 3
What are you looking for?