The sales achieved by a salesman and the commission payable to him is

1.	The sales achieved by a salesman and the commission payable to him is recorded in the books of accounts. But efficiency and intelligence of salesman is not recorded. Explain the reason with reference to the relevant accounting principle.
Answer» ‘Money Measurement Concept’: According to this concept, transactions that can be measured in terms of money only are recorded in the books of accounts. “The skill and intelligence of the salesman is not measurable in money terms.

The sales achieved by a salesman and the commission payable to him is recorded in the books of accounts. But efficiency and intelligence of salesman is not recorded. Explain the reason with reference to the relevant accounting principle.

Answer»

‘Money Measurement Concept’:

According to this concept, transactions that can be measured in terms of money only are recorded in the books of accounts. “The skill and intelligence of the salesman is not measurable in money terms.

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The sales achieved by a salesman and the commission payable to him is recorded in the books of accounts. But efficiency and intelligence of salesman is not recorded. Explain the reason with reference to the relevant accounting principle.

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