Mandla Nandini , Dr G Sudhakar 02 7(1) Financial transactions are recorded in the books keeping in view the going concern aspect of the business unit In going concern aspect it is assumed that the business unit has reasonable expectation of continuing the business for a profit for an indefinite period of time This assumption provides much of the justification for recording fixed assets at original cost and depreciating them in a systematic manner without reference to their current realizable valueIt is useless to record the fixed assets in the balance sheet at their estimated realizable values if there is no immediate expectation of selling them So they are shown at their book value ie Cost Depreciation and not at current realizable value The market value of the fixed assets may change with the passage of time but for accounting purpose it continues to be shown in the books in historical cost Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026