Question

Instead of preparing separate accounts for

items like calculators,

staplers, paper

punching machine and

other stationery items,

they all are grouped

under one stationery

expense account based

on

concept/convention​

Answer 1

Answer:

okay.

But

what we have to do?

Answer 2

Answer:

Instead of preparing separate accounts for items like calculators, staplers, paper punching machine and other stationery items, they all are grouped under one stationery expense account as per materiality concept of accounting.

Explanation:

Materiality concept of the accounting signifies the economic benefits and cost making decisions. It helps us to identify the major group that affect the financial statement. As, printing and stationery expenditure includes, miscellaneous expenses like purchase of calculator, staplers, papers etc. that form part of lowlower value items and assumed to be consumed within the period of 12 months. Hence, materially of lower value items are being recognised as revenue expenditure as per materiality concept.