Question

Q1 .Gaurav purchased 1,000 sq. yards land to build a factory and paid Rs. 15,00,000 towards its cost including registration charges. At the end of the financial year, the value of the land came down to Rs. 13.00,000. Gaurav recorded the land at Rs.13,00,000 and booked a loss of Rs. 2. 00.000. Is he
correct in treating the fall in value as a loss? State the accounting concept being violated​

Answer 1

Answer:

concept - cost concept

Explanation:

as per cost concept assets are recorded on cost not Nrv(net reliasble value)