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...