Question

Mr. Sumit, a proprietor, purchased Machinery( Fixed Asset) for Rs. 10,00,000 on 1st July 2020, at the end of the financial year the market value of machinery came down to Rs. 7,00,000 and Sumit recorded it at Rs. 7,00,000 and showed a loss of Rs. 3,00,000. Which Accounting Concept is being violated her

Answer 1

Explanation:

Mr. Sumit, a proprietor, purchased Machinery( Fixed Asset) for Rs. 10,00,000 on 1st July 2020, at the end of the financial year the market value of machinery came d