Question

M/s Vinod & Sons purchased Furniture on 1st February 2021 on credit from Godrej Interiors for Rs.40,000 . The payment was to be made on 25th February 2021. Accountant has recorded the transaction immediately on 1st February instead when the settlement takes place. Which accounting Principle/Assumption followed by the Accountant.​

Answer 1

Answer:

Expense Principle

Explanation:

The expense principle, or expense recognition principle, states that an expense occurs at the time at which the business accepts goods or services from another entity