Question

Arun constructed a building for Rs.5, 00, 000 for his new business concern. After 2 years theMarket value of the building is enhanced to Rs. 8, 00,000. a) If you are the accountant, which amount appears in the books? b) What is the accounting principle support your recording?

Answer 1

Answer:

a) ₹5,00,000 will ne appeared in books of accounts.

b) Due to historical cost concept or principle 5,00,000 will be recorded in books of accounts.

I hope it help u...