Question

Which of the following is not recorded in the books of accounts? And why?
i. Sales of goods
ii. Payment of salary
iii. Quality of staff

Answer 1

Answer:

Intangible assets are generally not recorded in the books of accounts. There are two types of assets namely tangible assets and intangible assets. Assets which have physical existence/ value are considered as tangible assets.

quality of staff is not recorded

Answer 2

Option iii Quality of staff is  is not recorded in the books of accounts.

Key reasons:

• Quality of staff can't be measured in terms of money.
• It doesn't have monetary value.
• They are qualitative aspects.

Hence, it can't be recorded in the books of accounts.

Which transactions are not recorded in the books of accounts:

As per the fundamental rules of accounts,

• Non monetary transactions are not recorded in the books of accounts.
• Exchange of goods and services are not recorded.
• If errors shows in the accounts because of not entering those transactions are known as error of principle.