REALISATION CONCEPT OF ACCOUNTING
ALL ABOUT ACCOUNTING :- 24th BLOG ☆☆☆ACCOUNTING☆☆☆ Hi freinds., 🙏 Today's discuss 7th concept of accounting.... So let's discuss ..... ★ REALISATION CONCEPT OF ACCOUNTING :- This concept states that revenue from any business transaction should be included in the accounting records only when it is realised. The term realisation means creation of legal right to receive money 💰. Selling goods is realisation, receiving order is not 🙅. In other words, it can be said that : ★[Revenue is said to have been realised when cash has been received or right 👍 to receive cash on the sale of goods or services or both has been created.]★ For eg :- (1). ABC TEXTILES received 📥 an order to supply some meter raw clothing 👔👕👖 worth ₹ 2,00,000 they supplied raw cloths worth ₹ 1,00,000 up to the Financial year ending 31st march 2020 and rest of the cloths were supplied in appril 2020. Now let us analyse the above examples