Question

"Non-monetary transactions are not recorded in the books of accounts
Explain.​

Answer 1

Answer:

Explanation:

No, it is not recorded in the books of accounts because the money measurement principle states that only monetary transactions i.e. realted to money transactions are recorded in the books of accounts

Eg.- The quality of employee is not a monetary transaction so it is not recorded in the books of accounts , and

Received money from bank is a monetary transaction so it is recorded in the books of accounts.

Hope this would help you

Answer 2

Explanation:

This concept implies that only those transactions, which can be expressed in terms of money, are recorded in the accounts. Since, money serves as the medium of exchange transactions expressed in money are recorded and the ruling currency of a country is the measuring unit for accounting. Transactions which do not involve money will not be recorded in the books of accounts. For example, working conditions in the work place, strike by employees, efficiency of the management, etc. will not be recorded in the books, as they cannot be expressed in terms of money.