Under the accrual concept of accounting income is recognised when goods or services have been sold, whether the amount has been received or not. Since it is income, it is credited to, the profit and loss amount. And since the amount is due to the enterprise, it is shown as a current asset in the balance sheet.

S.No.	Transactions	Classification
i)	Carriage paid on goods purchased.	Revenue expenditure
ii)	Legal expenses incurred for abuse of trade mark.	Revenue expenditure
iii)	Money raised by issue of equity shares.	Capital receipts

No, the trial balance will not agree. Because a trial balance will agree only if both the aspects of a transaction are posted into ledger accounts with correct amount.

The trial balance does not tally all the time. Sometime it will not tally, so the suspense account can be used to tally the trial balance temporarily.

	Assets Rs=	Liabilities Rs+	Capital Rs
(a)	30,000	20,000	10,000
(b)	60,000	25,000	35,000
(c)	55,000	25,000	30,000
(d)	90,000	10,000	80,000
(e)	25,000	10,000	15,000
(f)	40,000	10,000	30,000

(i) Readymade Software
(ii) Customised Software

The following are the different methods of providing depreciation:
(i) Straight line method or Fixed instalment method or Original cost method
(ii) Written down value method or Diminishing balance method
(iii) Sum of years of digits method
(iv) Machine hour rate method
(v) Depletion method
(vi) Annuity method
(vii) Revaluation method
(viii) Sinking fund method
(ix) Insurance policy method

(i) Trading refers to buying and selling of goods with the intention of making profit.
(ii) The trading accounts a nominal account which shows the result of buying and selling of goods for an accounting period.
(iii) Trading Account is prepared to find out the difference between the revenue from sales and cost of goods sold.
(iv) Cost of goods sold refers to directly related cost.

(i) At the end of the accounting year, all nominal accounts are closed but the business has to be carried on with previous year's assets and liabilities.
(ii) Journal entry made in the beginning of the current year with the balances of assets and liabilities of the previous year is opening journal entry.

American Accounting Association has defined accounting as "the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information".

Date	Particulars	R.N.	L.F.	Amount Rs.		Date	Particulars	V.N.	L.F.	Amount Rs.
				Cash	Bank					Cash	Bank
1.5.13	To Balance b/d			30,000		2.5.13	By Bank A/c		C	10,000
2.5.13	To Cash A/c		C		10,000	3.5.13	By Purchases A/c			2,500
4.5.13	To Vasan's Loan A/c			10,000		5.5.13	By Cash A/c		C	7,500
5.5.13	To Cash A/c		C		7,500	8.5.13	By Rent A/c				2,000
6.5.13	To Sales A/c			2,500		10.5.13	By Cash A/c		C		4,000
10.5.13	To Bank A/c		C	4,000		14.5.13	By Nataraj A/c (M.O)			300
15.5.13	To Akilan A/c				3,000	25.5.13	By Cash A/c		C		5,000
25.5.13	To Bank A/c		C	5,000		31.5.13	By Balance c/d			31,200	9,500
				51,500	20,500					51,500	20,500
1.6.13	To Balance b/d			31,200	9,500

Journal Entries of Mr. Nallappan

Date	Particulars		L.F	Debit Rs.	Credit Rs.
1.3.14	Cash A/c	Dr.		25,000
	Nallappan's Capital A/c				25,000
	(Amount invested in business)
3.3.14	Cash A/c	Dr.		10,000
	To Selvaraj A/c				10,000
	(Cash received)
5.3.14	ICICI Bank A/c	Dr		20,000
	To Cash A/c				20,000
	(Account opened and cash deposited)
10.3.14	Purchases A/c	Dr.		5,000
	To Cash A/c				5,000
	(Cash purchase)
15.3.14	Cash  A/c	Dr.		12,500
	To Sales A/c				12,500
	(Furniture purchased on credit)
18.3.14	Rent A/c	Dr.		2,500
	To Cash A/c				2,500
	(Rent paid)
25.3.14	Salary A/c	Dr.		5,000
	To Cash A/c				5,000
	(Salary paid)
28.3.14	Cash  A/c	Dr.		5,600
	To BankA/c				5,600
	(Cash withdrawn)
30.3.14	Insurance Premium A/c	Dr.		1,200
	To Cash A/c				1,200
	(Insurance Premium paid)

 

In the books of Mr. Somu Purchases Book

Date	Particulars	Invoice No.	L.F.	Amount Rs
				Details	Total
1.11.13	Gopal
	300 bags of Wheat @ Rs. 1,000 per bag			3,00,000
	Less: Trade Discount @ 10%			-30,000	2,70,000
3.11.13	Madhavan
	150 bags, Rice @ Rs. 900 per bag			1,35,000
	Less: Trade Discount @ 10%			-1,350	1,21,500
17.11.13	Rajan
	200 bags, Wheat @ Rs. 950 per bag				1,90,000
30.11.13	Purchases A/c                                    Dr.				5,81,500

Purchases returns book

Date	Particulars	Debit Note No.	L.F.	Amount Rs.
				Details	Total
5.11.13	Gopal
	10 bags, Wheat @ Rs. 1,000 per bag			10,000
	Less: Trade Discount @ 10%			-1000	9,000
14.11.13	Madhavan
	15 bags, Rice @Rs. 900 per bag			13,500
	Less: Trade Discount @ 10%			-1,350	12,150
24.11.13	Rajan
	50 bags, Wheat @, Rs 950 per bag			47,500	47,500
30.11.13	Purchases returns A/c                  Cr.				68,650

Sales Book

Date	Particulars	Invoice No.	L.F.	Amount Rs.
				Details	Total
7.11.13	Shiva
	10 bags, Wheat @ Rs.1,000 per bag			60,000
	Less: Trade Discount @ 5%			-3,000	57,000
12.11.13	Sharma
	25 bags, Wheat @Rs. 1,300 per bag			32,500
	Less: Trade Discount @ 10%			-3,250	29,250
30.11.13	Sales A/c                                  Cr.				86,250

Sales returns book

Date	Particulars	Credit Note No.	L.F.	Amount Rs.
				Details	Total
15.11.13	Shiva
	5 bags, Rice @ Rs. 1,200 per bag			6,000
	Less: Trade Discount @ 5%			-300	5,700
30.4.13	Sales returns A/c                    Dr.				5,700

(a) Straight Line Method:

Machinery Account

Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2012 Apr 01	To Bank A/c	50,000	2013 Mar 31	By Depreciation A/c	5,000
			''	By Balance c/d	45,000
		50,000			50,000
2013 Apr 01	To Balance b/d	45,000	2014 Mar 31	By Depreciation A/c	5,000
			''	By Balance	40,000
		45,000			45,000
2013 Apr 01	To Balance b/d	40,000	2014 Mar 31	By Depreciation A/c	5,000
			''	By Bank A/c	35,000
		40,000			40,000

Depreciation Account

Date	Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.
2013 Mar 31	To Machinery A/c	5,000	2013 Mar 31	By Profit & Loss A/c	5,000
		5,000			5,000
2014 Mar 31	To Machinery A/c	5,000	2014 Mar 31	By Profit & Loss A/c	5,000
		5,000			5,000
2015 Mar 31	To Machinery A/c	5,000	2015 Mar 31	By Profit & Loss A/c	5,000
		5,000			5,000

(b) Written Down Value Mathod:

 

Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2012 Apr 01	To Bank A/c	50,000	2013 Mar 31	By Depreciation A/c	5,000
			''	By Balance c/d	45,000
		50,000			50,000
2013 Apr 01	To Balance b/d	45,000	2014 Mar 31	By Depreciation A/c	4,500
			''	By Balance	40,500
		45,000			45,000
2014 Apr 01	To Balance b/d	40,500	2015 Mar 31	By Depreciation A/c	4,050
			''	By Bank A/c	36,450
		40,500			40,500
2015 Apr 01	To Balance b/d	36,450

Depreciation Account

Date	Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.
2013 Mar 31	To Machinery A/c	5,000	2013 Mar 31	By Profit & Loss A/c	5,000
		5,000			5,000
2014 Mar 31	To Machinery A/c	4,500	2014 Mar 31	By Profit & Loss A/c	4,500
		4,500			4,500
2015 Mar 31	To Machinery A/c	4050	2015 Mar 31	By Profit & Loss A/c	4050
		4,050			4,050

The differences between manual accounting and computerised accounting are given below:

Basis	Ready to use Software	Customised Software	Tailor-made Software
1. Nature of Business	Small, conventional business	Large, medium business	Large
2. Cost of installation and maintenance	Low	Relatively high	High
3. Expected level of secrey (software and data)	Low	Relatively high	Relatively high
4. Number of users and their interface	Limited	As per specifications	Unlimited
5. Linkage to other information system	Restricted	Not restricted	Not restricted
6. Adaptability	High	Relatively high	Specific
7. Training requirements	Low	Medium	High

Dr. Trading and profit ad loss account of Mr. Saleem for the year ended 31st March.2018 Cr.

Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.	Amount Rs.
To Opening stock		40,000	By Sales		2,00,000
To Purchases		1,20,000	By Closing stock		50,000
To Wages	16,000
Add: Outstanding	3,000	19,000
To Gross profit c/d		71,000
(Transferred to profit and loss account)
		2,50,000			2,50,000
To Rent and taxes	10,000		By Gross profit b/d		71,000
Add: Outstanding	2,000	12,000	(Transferred from trading account)
To Salary	20,000
Add: Outstanding	4,000	24,000	By Interest		1,000
To Depreciation on plant & machinery @ 5%	2,500
Furniture @ 10%	2,000	4,500
To Bad debts written off	2,000
Less: Old provision	1,500	500
To Interest on bank loan \(\left[ 20,000\times \frac { 4 }{ 100 } \right] \)		800
To Net profit		30,200
(To be transferred to capital account)
		72,000			72,000

Balance Sheet of Mr.Saleem as on 31st March 2018

Liabilities	Amount Rs.	Amount Rs.	Assets	Amount Rs.	Amount Rs.
Capital	80,000		Cash in hand		1,500
Add: Net profit	30,200	1,10,200	Bills receivable		15,000
Sundry creditors		25,000	Sundry debtors	60,000
Bills payable		25,000	Less: Bad debts written off	2,000	58,000
Bank loan @ 4%	20,000		Plant and Machinery	50,000
Add: Outstanding interest	800	20,800	Less: Depreciation @ 5%	2,500	47,500
Outstanding liabilities:			Furniture	20,000
Rent and taxes	2,000		Less: Depreciation @ 10%	2,000	18,000
Wages	3,000		Closing stock		50,000
Salaries	4,000	9,000
		1,90,000			1,90,000

	Particulars		L.F.	Dr. Rs	Cr. Rs
a	Suspense A/c	Dr		18
	To Mekala A/c				18
	(Excess amount posted to Mekala account rectified)
b	Discount allowed A/c	Dr		100
	Discount received A/c	Dr		100
	To Suspense A/c				200
	(Discount allowed wrongly posted to discount received account rectified)
c	Kannan A/c	Dr		275
	To Mannan A/c				275
	(Wrong credit to Kannan account instead of Mannan account rectified)
d	Stationery A/c	Dr		26
	To Suspense A/c				26
	(Purchase of stationery not posted to stationery account rectified)
e	Purchases A/c	Dr		100
	To Suspense A/c				100
	(Undercasting in the purchases book rectified)

Dr       Suspense Account       Cr

Particulars	Rs	Particulars	Rs
To Balance b/d	308	By Discount allowed A/c	100
To Mekala A/c	18	By Discount received A/c	100
		By Stationery A/c	26
		By Purchases A/c	100
	326		326

In the books of Abdul Rahuman Trading Profit and Loss Account 

Particulars	Rs	Particulars	Rs
To Opening stock	500	By Sales	5,000
To Purchases	1,300	By Closing stock	2,000
To Wages	700
To Gross profit c/d	4,500
	7,000		7,000
To Salary	500	By Gross profit b/d	4,500
To Net profit  (transferred to capital account)	4,500	By Discount received	500
	5,000		5,000

Balance Sheet as on 31st December, 2016

Liabilities	Rs	Rs	Assets	Rs	Rs
Capital	50,000		Building		50,000
Add: Net profit	4,500	54,500	Cash in hand		4,500
		54,500			54,500

Bank Reconciliation Statement as on 31^st March 2017

Particulars	Amount Rs	Amount Rs
Balance as per cash book		1,12,500
Add: Cheques issued but not presented	14,000
Wrong credited by the bank	2,000
Interest on debentures received	700	16,700
		1,29,200
Less: Cheques deposited but not cleared	6,300
Cash deposited in the bank	12,000
Bills dishonoured	3,000
Cash sales wrongly entered	4,000	25,300
Balance as per bank statement		1,03,900

Correct Trial Balance

S.No.	Name of account	L.F.	Debit Balance Rs	Credit Balance Rs
1.	Capital			50,000
2.	Discount received			3,000
3.	Rent paid		15,000
4.	Salaries paid		1,000
5.	Purchases of textiles		20,000
6.	Sale of textiles			30,000
7.	Salesmen commission paid		9,000
8.	Transport charges paid		6,000
9.	Cash balance		32,000
	Total		83,000	83,000

In the books of Kumaran Journal entries

Date	particulars	L.F	Debit Rs.	Credit Rs.
2017 April 1	Cash A/c    Dr.		1,00,000
	Stock A/c   Dr.		40,000
	Debtor A/c   Dr.		10,000
	Furniture A/c   Dr.		10,000
	To Creditor A/c (Anush)			40,000
	To Capital A/c(Balancing Figure)			1,20,000
	(Balancing of assets and liabilities brought forward)

Dr.                                         Ledger Account Cash Account                                               Cr.

Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017 Apr 1	To Capital A/c		1,00,000	2017 Apr 30	By Balance c/d		1,00,000
			1,00,000				1,00,000
2017 May 1	To Balance c/d		1,00,000

Dr.                                                                Stock Account                                                   Cr.

Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017 Apr 1	To Capital A/c		40,000	2017 Apr 30	By Balance c/d		40,000
			40,000				40,000
2017 May 1	To Balance b/d		40,000

Dr.                                                 Rohit Account                                                             Cr.

Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017 Apr 1	To Capital A/c		10,000	2017 Apr 30	By Balance c/d		10,000
			10,000				10,000
2017 May 1	To Balance b/d		10,000

Dr.                                                           Furniture Account                                                    Cr.

Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017 Apr 1	To Capital A/c		10,000	2017 Apr 30	By Balance c/d		10,000
			10,000				10,000
2017 May 1	To Balance b/d		10,000

Dr.                                                       Anush Account                                                            Cr

Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017 Apr 1	To Balance c/d		40,000	2017 Apr 1	By Sundry Assets A/c		40,000
			40,000				40,000
				2017 May 1	By Balance b/d		40,000

Dr.                                              Kumaran's Capital A/c                                                       Cr.

Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017 Apr 30	To Balance c/d		1,20,000	2017 Apr 1	By Cash A/c		1,20,000
			1,20,000				1,20,000
				2017 May 1	By Balance b/d		1,20,000

In the Books of M/s. Ponni & Co., Sales Book

Date	Particulars	Outward Invoice No.	L.F.	Amount
				Details (Rs)	Total (Rs)
2017 Aug 1	Senthil	68			20,500
Aug 4	Madhavan	74			12,800
Aug 7	Kanagasabai	78			7,500
	Sales A/cCr.				40,800

Dr.                                                      Ledger Account Sales Account                                            Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
				2017 Aug 31	By Sundries as per Sales Book		40,800

Dr.                                                  Senthil Account                                      Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2017 Aug 1	To Sales A/c		20,500

Dr.                                          Madhavan Account                                          Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2017 Aug 4	To Sales A/c		12,800

Dr.                                            Kanagasabai Account                                     Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2017 Aug 7	To Sales A/c		7,500

Sales Return Book

Date	Particulars	Credit Note No.	L.F.	Amount		Remarks
				Details (Rs)	Total (Rs)
2017 Aug 15 Aug 25	Senthil Madhavan	7 11			1,500 1,800
	Sales return A/c Dr.				3,300

Dr.                                            Ledger Account Sales return account                                                     Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2017 Aug 31	To Sundries as per Sales return Book		3,300

Dr.                                                         Senthil Account                                            Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
				2017 Aug 31	By Sales Return A/c		1,500

Dr.                                         Madhavan Account                                                           Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
				2017 Aug 25	By Sales return A/c		1,800

(i) Accounting Conventions:
1. The word convention refers to traditions or customs. The accounting convention describes the customs or traditions followed as a guide to the preparation of accounting statements.
2. Modern business world has accepted the utility of these Accounting conventions in making financial statements more realistic, reliable, and useful to all concerned parties. The following four conventions are generally adopted over a period of time.
(ii) Convention of consistency:
1. The consistency convention implies that the Accounting practice should remain the same from one year to another. The results of different years will be comparable only when same accounting methods are followed from year to year.
2. For Example: If a firm follows the original or fixed installment method of charging depreciation since its purchase/construction, the method should be followed without any change.
(iii) Convention of full disclosure:
1. The accounts must disclose all material information. The Accounting reports should disclose full and fair information to the related parties. The financial position and performance should be disclosed very honestly to all the users.
2. All the information should be relevant, reliable, comparable and understood by all the concerned authorities.
(iv) Convention of conservatism or prudence:
It is a policy of caution or playing safe. While recording the business transactions one has to anticipate no income but provide for all possible losses.

There are three bases of accounting in common usage, namely
(i) Cash basis
(ii) Accrual or mercantile basis
(iii) Mixed or hybrid basis
(i) Accounting on cash basis:
1. Under cash basis of accounting, actual cash receipts and actual cash payments are recorded.
2. Credit transactions are not recorded till the cash is actually received or paid.
3. Under the basis,
a) Any income received  
b) Any expenditure paid  
c) Any asset purchased for which cash is paid.
d) Any liability paid during the accounting period. Whether related to the past, present or future is taken into account.
(ii) Accrual or mercantile basis :
1) Under accrual basis of accounting, the income whether received or not but has been earned or accrued during the period and expenses incurred whether paid or not are recorded.
2) Under this basis,
a) Any income earned whether received or not
b) Any expenditure incurred whether paid or not
c) Any asset purchased whether cash is paid or not
d) Any liability incurred whether paid or not during the accounting period is recorded.
(iii) Hybrid or mixed basis :
1. Under mixed basis of accounting both cash basis and accrual basis are followed.
2. Incomes are generally recorded on cash basis whereas expenses are generally taken on accrual basis.

Importance of accounting is enumerated as below :
(i) Systematic records :
1. All the business transactions are recorded in the books of accounts.
2. Any event or happening which has financial effects is included in the accounting records.
(ii) Preparation of financial statements :
Results of business operations and the financial position of the concern are provided by accounting periodically through the preparation of financial statements namely profit and loss account and balance sheet.
(iii) Assessment of progress :
Analysis and interpretation of financial statements can be done to assess the progress made in different areas and it also identify the areas of weaknesses.
(iv) Information to interested groups :
Accounting supplies appropriate information to different interested groups 'like owners, creditors, management, employees, financiers, tax authorities, and government.
(v) Taxation :
Accounting records are the basis source for computation and settlement of sales tax, income tax, and other local taxes.

1. Capital expenditure
2. Revenue expenditure
3. Deferred revenue expenditure

(a) Specimen of Purchases book:

Date	Particulars	Invoice No.	L.F.	Amount Rs.
				Details	Total

(b) Specimen of Sales book:

Date	Particulars	Invoice No.	L.F.	Amount Rs.
				Details	Total

(c) Specimen of Purchases returns book: 

Date	Particulars	Debit Note No.	L.F.	Amount Rs.
				Details	Total

 (d) Specimen of Sales returns book:

Date	Particulars	Credit Note No.	L.F.	Amount Rs.
				Details	Total

Source Documents: Source documents are the evidence of business transactions which provide information about the nature of the transaction, the date, the. amount and the parties involved in it Transactions are recorded in the books of accounts when they actually take place and they are duly supported by source documents.
According to the verifiable objective evidence principle of accounting, each transaction recorded in the books of accounts should have adequate proof to support it These supporting documents are the written and authentic proof of the correctness of the recorded transactions. These documents are required for audit and tax assessment They also serve as the legal evidence in case of a dispute.
Examples: Cash memos, invoices, bills, receipts, vouchers, bills receivable, bills payable, wage sheets, salary pay acquittance, c~rresp<?ndence, etc.,

Rectification of Errors

S.No.	Particulars		L.F.	Debit Rs	Credit Rs
(a)	Rent A/c	Dr.		12,600
	To Landlord's A/c				12,600
	(Correction of wrong debit to Landlord's A/c for rent paid)
(b)	Sales A/c	Dr.		6,000
	To Computer A/c				6,000
	(Correction of wrong credit to sales of computer)
(c)	Drawings A/c	Dr.		7,400
	To Trade expenses A/c				7,400
	(Correction of wrong debit to trade expenses A/c for drawings made)
(d)	Repairs A/c	Dr.		500
	To Machinery A/c				500
	(Correction of wrong debit to Machinery A/c for repairs made).

Bank reconciliation statement as on 31st December, 2017

Particulars	Amount Rs	Amount Rs
Balance as per bank satement		6,500
Add: Cheque deposited into bank but not credited	10,500
Wrong debit by the bank	500
Intent and bank charges debited by the bank	180
Insurance premium directly paid by the bank as per standing order	100	11,280
		17,780
Less: Cheques issued but not yet presented for payment	3,000	3,000
Balance as per cash Book		14,780

In the books of Murali Trial balance as on 31st March, 2017

S.No.	Name of the account	L.F.	Debit balance Rs.	Credit balance Rs.
1.	Sales			35,000
2.	Interest paid		350
3.	Returns inward		2,500
4.	Depreciation		2,400
5.	Office rent		2,000
6.	Audit fees		1,000
7.	Octroi duty		2,000
8.	Land		90,000
9.	Capital			60,000
10.	Bank overdraft			11,250
Total			1,06,250	1,06,250

Procedure
i) Open a new spreadsheet in MS-Excel
ii) Enter values in the cells as given below

	A	B
1	Rate of interest (p.a.)	10%
2	Number of instalments (nper)	48
3	Loan amount (pv)	-300000
4	FV	0
5	Type	0

iii) Compute PMT in the cell B6 by the formula
= PMT(B1/12,B2,B3,B4,B5)
= Rs.7,608.78

(i) The amount given to the petty cashier in advance is known as "Imprest Money". The word imprest means payment in advance.
(ii) The word imprest means payment in advance.
(iii) The petty cashier makes payments from this amount and records them in petty cash book. At the end of a particular period the petty cashier submits the petty cash book to the head cashier.
(iv) The head cashier scrutinises the petty payments and issues a fresh cheque equal to the amount spent by petty cashier so that the total amount with the petty cashier is how equal to the amount he had received in the beginning as advance.
(v) Under the system the total cash with the petty cashier never exceeds the imprest and at any time during the period. This method thus provides an effective control over petty payments.

(i) "Business units last indefinitely". This statement is used in Going Concern Concept.
(ii) Going concern concept influences Accounting practices in relation to valuation of assets and liabilities, depreciation of the fixed assets, treatment of outstanding and prepaid expenses and Incomes.
(iii) The values involved in the going concern concept are
1. Growth: By following the going concern concept, business activities are to be carried out for future growth. 
2. Preparing for future: By following the going concern assumption, business firm always intends to prepare for the future.