what is business entity concept
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The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. Doing so requires the use of separate accounting records for the organization that completely exclude the assets and liabilities of any other entity or the owner.
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Hey!
Business entity concept state that the business and the businessman are totally distinct and separate from each other from the point of view of accountings.
Logic behind the concept - the accounting records or the accounting equations are made in the book of accounts or journals from the point of view of the business not that of the businessman.
#thank you
Business entity concept state that the business and the businessman are totally distinct and separate from each other from the point of view of accountings.
Logic behind the concept - the accounting records or the accounting equations are made in the book of accounts or journals from the point of view of the business not that of the businessman.
#thank you
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