A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in his books for Rs. 750000. Which of the following concept is violated.

Business accounting is the process of gathering and analyzing financial information on business activity, recording transactions, and producing financial statements.

Why Business accounting is important: By keeping tabs on all of your assets, liabilities, inventory, and other records can help you secure investors, protect your assets from theft, and find ways to grow (and often, save) your company.

Primary duties of small business accounting include bookkeeping, preparing and filing tax returns, and drafting financial reports.