1. Sale is recognised on the basis of Cash Memo or Invoice. State the principle involved in this.
  2. Closing stock of a business is valued at market price of Rs 12000 but its cost price is Rs 14000. Name the concept followed by the business in doing so.

Dear Student,

Sales is recognised by cash memo : cash basis of accounting or cash concept
Closing stock is valued at cost price or market price whichever is lower : prudence concept

Regards

  • -9
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