MONETARY UNIT PRINCIPLE OF ACCOUNTING
ALL ABOUT ACCOUNTING :- 15th BLOG ☆☆☆☆☆ACCOUNTING☆☆☆☆☆ Hi freinds 🙏., Today's discuss 10th accounting principle. So let's discuss., ★ MONETARY UNIT :- The monetary unit principle states that business transactions should only be recorded if they can be expressed in terms of a currency. ... According to the monetary unit principle, when business transactions or events occur, they are first converted into money, and then recorded in the financial accounts of a business. * The stable monetary unit :- The stable monetary unit concept assumes that the value of the rupees is stable over time. This concept essentially allows accountants to disregard the effect of inflation -- a decrease, in terms of real goods, of what a rupees can purchase. * Importance of monetary unit assumption :- While the monetary unit assumption provides a stable basis upon which to value transactions, there are two important limitations: inflation and handlin