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Theory Base of Accounting — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountTheory Base of Accounting1 Mark
Question
Explain Business Entity Concept.
✓

Answer

According to the Business Entity Concept, proprietor of the business is a separate and distinct entity from business. The transactions are recorded in the books of account from the point of view of business, not from the point of view of the proprietor.

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