''Non-monetary transactions are not recorded in the books of accounts'' . explain .

Accounting is identifying and measuring financial transactions in terms of a common measurement unit that is in terms of currency of a country which is Rupees in India.Thus events which can be quantified in terms of money only those items should be recorded in financial accounts. Those items which can not be measured in terms of money that is non monetary items should not be recorded like appointments,research work etc. Qualitative aspects of business are not recorded in accounting. There are some principles which are to followed by all entities in preparing the final accounts.Thus accounting is based on some basic accounting principles like money measurement principle which states that transactions which can be measured in terms of money are to be recorded in the books and transactions which are non monetary in nature should not be recorded.