Question

Rajawat Furnishing House purchased 10 tables @ Rs.2,000, 20 chairs @ Rs.800 and 2 Sofa Set. He was not able to record the transaction of Sofa Set as it does not fulfil the condition of

Answer 1

Answer:

recording the original entry

Answer 2

He was not able to record the transaction of Sofa Set as it does not fulfill the condition of "Consideration".

• The recording of the Accounting transactions are based on some accounting concepts.
• One of those is Money Measurement Concept which is also known as Measurability Concept.
• The Money Measurement Concept says that a business should record only those transaction sin the books of accounts that can be expressed in the term of money.
• While recording a transaction in the books of accounts one should know what is the nature of product sold or purchased, which account should be affected and what are the amounts that are to be debited and credited.
• Here in this case the goods is present, the accounts to affected is known but the value of debit and credit is not know.
• Therefore the transaction of the Sofa Set cannot be recorded.

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