Accounting Concepts : 11. Legal Aspect Concept:
This concept means that the accounting records and books should reflect the legal position. For example, if goods are sold by a concern on approval basis, in accounting, the customers to whom goods are sold on approval basis should not be shown as debtors unless the goods are approved by them.
This concept also means that the accounting records and statements should conform to legal requirements. That is, the accounting records should be kept and the statements should be prepared in the manner provided by law, i.e., the relevant acts.
This concept means that the accounting records and books should reflect the legal position. For example, if goods are sold by a concern on approval basis, in accounting, the customers to whom goods are sold on approval basis should not be shown as debtors unless the goods are approved by them.
This concept also means that the accounting records and statements should conform to legal requirements. That is, the accounting records should be kept and the statements should be prepared in the manner provided by law, i.e., the relevant acts.
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