NCERT · Class 11 · Accountancy · Theory Base of AccountingAccording to the Money Measurement Concept, which of the following transactions will be recorded in the books of accounts?
Step-by-Step Solution
Only transactions that can be expressed in terms of money are recorded in accounting. Therefore, a machinery purchased for ₹50,000 will be recorded, while qualitative factors like employee skill are ignored.
Detailed Options Breakdown
Option : Resignation of an efficient manager
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Theory Base of Accounting.
Option 1: Purchase of machinery for ₹50,000 (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Strike by employees
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Theory Base of Accounting.
Option 3: Quarrel between two departmental heads
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Theory Base of Accounting.
💡 Study Guide: This question tests core syllabus concepts from Theory Base of Accounting. For formulas, key summaries, and mock exam reference guides, read the full Theory Base of Accounting Revision Notes.