.DEFINITION • Accounting concept refers to the basic assumptions which serve the basis of recording actual business transactions.

• • • • • Business entity Money measurement Going concern Realization Matching .

• Business entity concept assumes that for accounting purposes. the business enterprise and its owner(s) are two separate entities. .

• 18/2/2011: Ms. Dung decide to invest 5 billions to open jewelry PNJ center at Da Nang. • 3 billions for goods • 1 billions for furniture • 1 billions for machines .

• Money measurement concept assumes that all business transactions must be recorded in the books of accounts in terms of money .

.019 billions VND • rent employees: 1. loyalty.002 billions VND • Sincerity. honesty are not recorded.581 billions VND • purchase of raw materials: 2.• At the end of first quarter in 2011 • sale of goods worth: 3.

• Going concern concept states that a business firm will continue to carry on activities for an indefinite period of time. .

• Its life span is 15 years . • Equipped with a machinery and modern production equipment of 30 billions. PNJ started to construct the largest jewelry factory in Vietnam.• 4/4/2011.

• Realization concept states that revenue from any business transaction should be included in the accounting records only when it is realized. .

• If PNJ sold goods worth 35 billions in 2010 and the goods have been delivered during the same year .• PNJ received an order worth 35 billions. They supplied goods worth 20 billions up to the year ending 31/12/2010 and rests were supplied in January 2011.

• Matching concept states that the revenue and the expenses incurred to earn the revenue must belong to the same accounting period. .

Postage 4.Credit: 523 6.Depreciation on machine Amount (million VND) Revenue Amount (million VND) 3551.Carriage 3.Sales 27.Expenses 1.Cash: 1548 .Interest received 3021 57 2071 200 Total 2842 Total 3078 .Rent paid 5.Goods purchased .Cash: 2015 33.Salary 2.Credit: 1006 1562.

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