Question

Explain the concept ad coventions of accounting with the help of example

Answer 1

Business Entity Concept

Business and owner are 2 separate entities.
Books of accounts are prepared from the point of view of business. NOT from the point of view of owner.

Answer 2

Answer:

Accounting conventions can not to signify customs or traditions as a guide to the preparations of accounting statements. Accountancy is based as usages and customs. Custom is a practice which is in us since long. Naturally accountants have to adopt that custom. These are formed as conventions in accounting. Major conventions are used in preparation  of final accounts also.