The primary aspect of any business transaction that is recorded in accounting is taken in monetary value. The column that is made, in regards to checking out the total monetary transaction, is denoted by rupees and paise. Any real values, such as measurement units, or personal views or recorded data that are non-financial in nature are not taken into consideration.

When monetary amount is placed in the Book Of Accounts, evaluation of data becomes more for malistic and easily understandable.

Example: When it is stated that a particular company started with a capital amount of Rs 10,000 it is taken that total value is that amount. However, if another value as 20 kg of wheat along with the monetary value is added, there arises a discrepancy, since that value of wheat could be priced at any rate while buying and then while using it, its price may be different. At this rate counting, profits become difficult.

Though total monetary value has its set of issues, however, this method is the most opted one.

Links of Previous Main Topic:-

Links of Next Financial Accounting Topics:-

Submit Your Assignment


Customer Reviews

My Homework Help
Rated 5.0 out of 5 based on 510 customer reviews at
Rating View

Trusted Reviews from Google

Trusted Reviews from trustpilot