Question

Assertion (A): Sale of Goods is Recorded in Books of Accounts at the time of Transaction Taken Place.
Reason (R): For Identification Revenue, we have one Concept i.e. Revenue Recognition Concept. (1)
(A) Assertion and Reason Both are Correct and Reason is Correct Explanation of assertion.
(B) Assertion and Reason Both are Correct and Reason is Not Correct Explanation of assertion.
(C) Assertion is Correct but Reason is Incorrect.
(D) Reason is Correct but Assertion is Incorrect

Answer 1

Answer:

I don't understand your question

Answer 2

Assertion (A): Sale of Goods is Recorded in Books of Accounts at the time of Transaction Taken Place.

• The transaction of 'sale of goods' for payment is recorded utilizing 2 journal entries in such an inventory management system.
• The initial journal entry recounts the cash received from a customer, increasing the company's sales revenue.
• The second entry is about inventory reduction and noting the cost of sales. In an inventory management system, usually two entries is required to record the sale of commodities.

Reason (R): For Identification Revenue, we have one Concept i.e. Revenue Recognition Concept. (1)

• Revenues are recognized when they are realised and otherwise realisable, and they are earned (typically when commodities are exchanged but rather services are given), regardless of when cash is obtained, per the principle.
• Cash accounting, on the other extreme, recognizes revenues when cash is obtained, regardless of when products or services are sold.

Therefore, (C) Assertion is correct but Reason is Incorrect.