Only financial transactions are recorded in accountancy explain this statement and give examples.

Dear Student, Only Financial Transactions are to be recorded in accountancy because it is due to Money Measurement Concept , which states that only those transactions are to be recorded in books of accounts which are measurable in terms of money. Hence , it is concerned with the Nominal value not the real value . For example - Mohan purchase television for ₹ 12, 000 . So this will be recorded. But if we say that our employees are very honest, so this can't be recorded as it's not possible to measure it in terms of cash. Therefore only financial transactions are recorded in the Books of accounts. Regards.