Define Busines entity concept?

Answer Posted / devi

According to this concept, it should be noted that only business transactions should be taken into the account. Personal transactions should not be clubbed into this. eg: Proprietor's Insurance Premium. This premium is a life of the proprietor's and it is completely personal so it comes under "Drawings" account.

Is This Answer Correct ?    0 Yes 1 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Why we reconcile our debtors? what steps we taken during reconciliation.

1570


how to entery pass in tally when items damage(items insured)and claim to insurance co.

1998


Short answer on____________Assessment Year

1325


if you fix salary to some body for Rs.10000/- what are the segregations to be done and what are the deductions to be done (segregations like basic, da,ta,conveyance etc., how ? what percentage what speaks law) and deductions what are those like, pf,esi,pt, etc., what ever

1522


How do you avoid loss situation

1456






Since the interest rates on fixed deposits are very low as compared to the other growth oriented investment options, what are the permitted investment options that a public trust like that of a private school or small credit societies have and which are permitted by charity commissioner, Mumbai

1482


What is deffered income

1667


Distinguish capital and revenue expenditure

1583


Transfer nett profit of Rs 325000/- to Reserves and Surplus

1925


what are the steps used in UAT in Oracle Apps?

1264


What is the definition of LOSS. Give the formula if any.

1680


Under the accrual basis of accounting incomes are recognised at the time -------------------

1578


what is the process to return sales tax file?how can i prepared s.t. file?what should be qualification for it?

1460


Dear Friends, Please help me with the below, I am new to the current company and newly accountant. My question is, In Balance sheet, Cash in Drawer is showing excess amount and I could not tally it with sales. Please guide me how do I need to tally CASH IN DRAWER? I don't want to reconcile. I only want to tally. Please help. Thanks in advance.

2650


what is the use of special general ledger if the normal trasaction in usage.

1597