ACCOUNTING PERIOD CONCEPT
ALL ABOUT ACCOUNTING :- 21th blog ☆☆ACCOUNTING☆☆ Hi freinds., 🙏 Today's discuss 4th concept of accounting.... So let's discuss ..... ★ ACCOUNTING PERIOD CONCEPT :- All the transactions are recorded in the books of accounts on the assumption that profit on these transactions are to be ascertained for a, specified period. This is known as accounting period concept. Thus, this concept requires that a balance sheet ⚖️ and profit and loss account should be prepared at regular intervals. This is necessary for different purpose like, calculation of ptofit, ascertaining financial position, tax computation etc. Further, this concept assumes that, indefinite life of 👨💼business is devided into parts are known as accounting period. It may be of one year, six months, three months, one month, etc. But usually one year is taken as one accounting period which may be a calender year or financial year. As per accounting period