Resignation by a finance manager is not recorded in books of accounts. Give reasons?

Hi Teresah,

In accounting we have 2 concepts. 1. Event 2. Transaction. 

In books of accounts we always record Transactions only and not Events, as the Events do not have financial values assigned to it. 

We record transactions as all the transactions have financial values assigned to it.

There is one more accounting concept known as Money Measurement Concept. According to this concept all transactions which are expressed in money terms are to be recorded in the books of accounts.

So as the "Resignation of Finance Manager" cannot be measured in money terms is not recorded in the books of accounts.

However Liabilities which may arise as a result of the resignation of Finance Manager will be recorded in the books of accounts.

Hope you will be satisfied with the answer.

Thanks

Motashim Badshah

we record only those transactions which can ... for dicount recieved and discount allowed

becouse resignation not from accounts with should recorded