Question

Only financial transactions are recorded in Accounting. Explain this statement.

Answer 1

Only Financials Transactions are to be recorded because it is due to Money Measurement Concept , which states that only those transactions are to be recorded in books of accounts which consist of cash.

Hence , it is concerned with the Nominal value not the real value .

For example - Mohan purchase television for ₹ 12, 000 .
So this , will recorded in journal entry book as it has cash transactions.

Answer 2

according to money measurement concept the transaction which are monetary is recorded in books of account. the  goods and services wich ca be measured i terms of money are recorded like assets purchased 100000 these transaction can be recorded in accounting . the tranasaction which cant be monetary can not be recorded like goodwill etcc