Accounting Principles

 1. Dual Aspect                                                                     According to this concept each and every business transactions has two aspects. This is also known as Accounting Equivalence concept.

2. Varifiability and Objectivity Principle                       This Principles says that the accounting data provided in the books of accounts should be verifiable and dependable. The figures exhibited in the financial statements should have supportive evidences such as bills and vouchers.

3. Historical Cost                                                                 Historical Cost Principles requires that all transactions should be recorded at their acquisition of cost . The acquisition of cost refers to the cost of purchasing the assets and expenses incurred in bringing the assets to the intended condition and location of use.

4. Revenue Recognition Principle                                      Revenue is the amount that a business earns through sale of goods or services. Revenue is recorded at the time when the title of goods passes from the seller to the buyer.

5. Matching Principle                                                             As per the Matching Principle only those expenses pertaining to the current accounting period must be matched against the revenue relating to the same period

6. Disclosure Principles                                                          This Principle States that the published financial statements must fully disclose the true and fair view of the state of affairs of the concern for a particular period or on a particular date.