keep account books in the name of entity

record transactions only of entity

record transactions from view point f entity

record transactions between owner and entity

recording transactions only in terms of money

record only items measurable in terms of money

items like assets, expenses etc should be recorded only at cost value

expenses are recorded at the actual amount of expenditure

treat expenditure useful for long term as fixed assets

treat expenditure useful for medium term as deferred expenses

get long term loans and show as liabilities

income only recorded on realization i.e. when it is actually received or earned

accrual concept gives rise to items of accrued income sundry debtors or creditors, etc.

record credit transactions

use double entry system of book keeping

record one aspect as debit and other as credit

recording & reporting te business transactions in a similar manner

a concern should consistently follow the Accounting Policies chosen by it

Helps to compare the performance of the concern over a number of years

record only actual income

record even expected losses

disclose fifinancial position (assets & liabilities) in balance sheet

disclose financial performances (income & expenses) in P & L account

information disclosed should be understandable, relevant, reliable & comparable

record only material details

keep separate record in individual accounts

report only material details

match expenses with income