Q.15. Shri Rakesh has started his business of retail trade at a moderate level on October 1 2012. He desires that he should prepare first Profit and Loss Account and Balance Sheet on March 31, 2013 and thereafter every year on March 31. You have to appraise his decision and ascertain whether his decision if justified.
Dear Student
The decision is justified based on the accounting period concept which suggests that the books of accounts must be drawn for a fixed period known as accounting period.
Regards
The decision is justified based on the accounting period concept which suggests that the books of accounts must be drawn for a fixed period known as accounting period.
Regards