Vinod & sons recieved and order from karbon textile co. For rs 3,50,000. Will it be recorded in the books of account of the firm? Give reason and the principle involved.
Dear Student
As per the concept of Prudence , An enterprise should always record for anticipated losses but should record gains only when their is a very reasonable evidence that gains would be received or are receivable.
As we have only received an order for the Sales and also no advance money is received we shall not record the in the books of accounts.
Regards
As per the concept of Prudence , An enterprise should always record for anticipated losses but should record gains only when their is a very reasonable evidence that gains would be received or are receivable.
As we have only received an order for the Sales and also no advance money is received we shall not record the in the books of accounts.
Regards