Question

Gaurav is the sole owner of shoe central, a small shoe shop. one day, he buys a used car for his personal use, and pays rs. 20,000 from his savings account. the fact that this transaction has no effect on shoe central's financial accounts is an application of the

Answer 1

This trasanction is application of the concept "seperate entity"

that means owner is seperate from the business. All his personal incomes and expenses and any other personal trasanctions will not be merged in business books of accounts.