Question

(v) Appointed Mr. Raj as the Manager of the business with the salary of
Rs. 12.000 p.m state the reason why it is a business transaction​

Answer 1

Answer:

Yes it is a business transaction

Explanation:

Appointment of a Manager is a event.

Managers are the asserts of the firm but they cant be measured in monetary terms so according to money measurement concept, it is not recorded in books of accounts.

But, giving salary(12,000 p.m) is a expense to firm so it is recorded in books of accounts and considered as business transaction.