Question

You are running a business. Do you record the monetary and non-monetary transactions
in accounting during business? Explain this concept with an example. ​

Answer 1

Answer:

We only record monetary transactions in accounting as the non monetary one's are not recorded as per the rules of accounting. eg.1- the nature of your business is timber, so if you go and purchase timber for your business that is considered as goods, so the entry will be passed on as there's a transaction going on with money involved in it.

2- for the non monetary, suppose you go to a religious place to worship God, that will not be recorded in the books of accounting as there is no involvement of money and it's just for your own personal satisfaction.

hope it helps.☺️