Money Measurement Concept Video Lecture | Accountancy Class 11 - Commerce

money measurement concept only monetary
transactions only transactions which can
be measured in terms of money only
transactions which can be measured in
terms of money can be recorded in the
books of account if recorded in the
currency of the country in which the
books are kept any other transaction
however important it may be any other
transaction too vital to the business
organization will not find a place in
the books of the business organization
suppose suppose a manager who runs the
business he is the all in all of the
particular business for some reason he
is to leave the entire business all the
other employees in the organization all
depend on this one person the very
continuity of the business may be in
question if this particular person
leaves an event of such an such great
importance cannot be recorded in the
books of account because it cannot
really be measured in terms of money the
loss of his leaving cannot be recorded
in terms of money if we buy machinery
for one life I know that the cost of
machinery is 1 lakh has been measured in
terms of money there is a value to that
machinery it can be recorded but this
manager leaving though is of crucial
importance very very important even in
the for the business it cannot find a
place in the books of account