Sale is recognised on the basis of Cash Memo or Invoice State the principle involved in this Closing - Accountancy - Theory Base of Accounting

Question

Sale is recognised on the basis of Cash Memo or Invoice State
the principle involved in this
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

Nitin Verma · Accepted Answer

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

Sale is recognised on the basis of Cash Memo or Invoice. State the principle involved in this. 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.

Sale is recognised on the basis of Cash Memo or Invoice. State the principle involved in this.

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.