Question

Production at a factory had to stop for a week due to labour strike. The owner estimated the loss of production and the likely loss of profit arising out of the situation. He directed the accountant to record this loss in the books of account. Is the owner correct in recording the likely loss? Give reason

Answer 1

Answer:

here is your answer

Explanation:

Acvording to Principle of Account The estimated loss can not be recorded in the books of account

Answer 2

Answer:

No, the owner is wrong

Explanation:

According to the money measurements principle, we can only record those transaction which can be measured in terms of money.