Question

A concept of Accounting directs that Anticipants no profit,but provide for all possible losses.Name this concept and give its signifiance.
prepare Accounting Equation from the following.
(a)Started business with cash Rs.20000.
(b)Purchased goods gor cash Rs.6000 and on credit Rs.15000.
(c)Sold goods for cash costing Rs.4000 at a profit of 20% and in credit costing Rs.72000 at a profit of 25%.

Answer 1

this statement indicates towards the principle of conservatism or prudence