Explain the need for preparing trial balance.

Explain the purposes of various subsidiary books.

When his business becomes large, what other books will he be maintaining?

Ram enterprises received a bank statement on 31^st March, 2018, which showed a credit Rs balance of Rs. 13,500. On the same date, the balance as per cash book was Rs. 11,000.
Think of minimum five possible causes of difference [with amount] between these two balances.

	Particulars.	Amount Rs
(i)	Credit balance as per bank statement	13,500
(ii)	Bank charges not recorded in cash book	500
(iii)	Cheques deposited but not collected	2,600
(iv)	Insurance premium paid by bank	400
(v)	Cheques issued but not yet provided for payment	6000

Pass the journal entries rectifying the following errors:
(i) Purchases of office furniture of Rs. 10,000 was recorded in Purchases book.
(ii) Office rent of Rs. 15,000 was debited to the personal account of the landlord.
(iii) Old machine was sold for Rs. 5,000 was credited to Sales account.

Sunil & company purchased a fixed asset on 1.4.2002 for Rs. 5,00,000. Depreciation is to be provided @ 15% per annum according to straight line method. The books are closed on 31^st March every year. Prepare fixed asset account and depreciation account for three years.

Write any three examples of revenue expenditure.

The following are some of the balances extracted from the ledger of Mr. Kalyana Sundaram as on 31^st December 2016. Prepare a trading account.

Particulars	Debit Rs.	Credit Rs.
Stock 1.1.2016	12,500
Purchases	1,00,000
Sales		1,50,000
Return outwards		5,000
Return inwards	10,000
Salaries	4,400
Wages	.7,500
Rent	2,750
Carriage inwards	2,500
Carriage outwards	750
Power, coal, gas	1,000
Stock on 31.12.20l6 was valued at Rs.14,000

The Trial balance shows the followings:
Capital as on 31-03-2013     Rs.6,00,000 .
Drawings as on 31-03-2013  Rs.50,000
Charge interest on drawings @ 5% pass adjusting entry. Show how this item appear in the final accounts.

What is opearating system? Give two examples.