GOING CONCERN CONCEPT OF ACCOUNTING
ALL ABOUT ACCOUNTING :- 20th BLOG ☆☆☆ ACCOUNTING ☆☆☆ Hi freinds., 🙏 Today's discuss 3rd concept of accounting.... So let's discuss ..... ★ GOING CONCERN CONCEPT :- This concepts states that a business firm will continue to carry on it's activities for an indefinite period of time 🕒. Simply stated, it means that every business entity has continuity of life. Thus, it will not 🙅 be dissolved in the near future. This is an important assumption of accounting, as it provides a basis for showing the value of assets in the balance sheet ⚖️. For example, a company purchases a machinery of rupees ₹ 12,00,000 and it's life span is 12 years. According to this concept every year some amount will be shown as expenses and the ⚖️balance amount as an asset. Thus, if an amount is spent on an item watch will be used in business for many years, it will not be proper to charge the amount from the revenue of the year in which the item i