ACCOUNTING COST CONCEPT
ALL ABOUT ACCOUNTING :- 22nd BLOG ☆☆☆ACCOUNTING☆☆☆ Hi freinds., 🙏 Today's discuss 5th concept of accounting.... So let's discuss ..... ★ ACCOUNTING COST CONCEPT :- Accounting cost concept states that all assets are recorded in the books of accounts at their purchase price, Which includes cost of acquisition, transportation and installation and not at it's market price. It means that fixed assets like building 🏢 machinery and furniture, etc are recorded in the books of accounts at a price paid for them. For eg : a plant and machinery was purchased by M/S. ABC PVT. LTD. for rupees ₹10,00,000 , for manufacturing fabrics. An amount of ₹ 500 were spent on transporting the machine to the factory site. In addition ,Rs. ₹ 1000 were spent on it's installation. The total amount at which the machine will be recorded in the books of accounts would be the sum of all these items I.e. ₹ 10,01,500. This cost is also known as his