Mr. Muhammed, a sole trader, purchased a TV for Rs. 12,000/- for his domestic use and asks his accountant to record this as a business expense. But the accountant, argues that it is the violation of the accounting principle. Is he right? If so, prove your answer by highlighting the relevant accounting principle.

Mr. Muhammed, a sole trader, purchased a TV for Rs. 12,000/- for his d

1.	Mr. Muhammed, a sole trader, purchased a TV for Rs. 12,000/- for his domestic use and asks his accountant to record this as a business expense. But the accountant, argues that it is the violation of the accounting principle. Is he right? If so, prove your answer by highlighting the relevant accounting principle.
Answer» The accountant’s viewpoint is correct because the business is separate from the businessmen as per the ‘‘Accounting Entity Concept”.

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