Accounting Entity Accounting Concept

Accounting Concept : Accounting or Business Entity
A business is concerned as a unit or entity separate from its owners or members.For Example ; In case of Sole Proprietor concern, the proprietor is treated to be separate and distinct from business he/she owned.

Few Points to Remember
  • A business is treated as separate entity from its members
  • A separate set of Book is required to be prepared
  • Owner Capital is treated as liability from the business point of view

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