A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in his books for Rs. 750000. Which of the following concept is violated. (a) Money measurement (b) Conservatism (c) Consistency (d) None of these

A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the  year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But  the trader recorded in his books for Rs. 750000. Which of the following concept is violated.  
(a) Money measurement  
(b) Conservatism  
(c) Consistency  
(d) None of these
by

1 Answer

Answer :

(b) Conservatism
by

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