The limitations of Book-keeping are:
1. Only monetary transactions are recorded in the book accounts.
2. Effects of price level changes are not considered.

No, they can appoint a separate person for each one.

In purchase return, the goods are returned for the following reasons:
(i) Goods may be defective
(ii) They might have been damaged in transit
(iii) Quantities delivered may not agree with invoice
(iv) They might not as per the sample or specifications.
(v) There may be breach of agreement.

Examples of Readymade software:
(i) TALLY
(ii) MS-EXCEL

Amount of depreciation per year = \(Original\ cost\ of\ the\ asset − Estimated\ scrap\ value\over Estimated\ useful\ life\ of\ the\ asset\ in\ years\)
\(={1,90,000 – 15,000\over 10}={1,75,000\over 10}\) = Rs.35,000 per year

(i) Sinking fund method is adopted especially when it is desired not merely to write off an asset but also to provide enough funds to replace an asset at the end of its working life.
(ii) Under this method, the amount charged as depreciation is transferred to depreciation fund and invested outside the business.
(iii) This method of depreciation is suitable for assets of higher value.
(iv) This method is also known as depreciation fund method

The following are the different methods of providing depreciation:
(i) Straight line method or Fixed instalment method or Original cost method
(ii) Written down value method or Diminishing balance method
(iii) Sum of years of digits method
(iv) Machine hour rate method
(v) Depletion method
(vi) Annuity method
(vii) Revaluation method
(viii) Sinking fund method
(ix) Insurance policy method

1. The profit realised over and above the cost of the fixed asset is called capital profit.
2. Capital profit is the profit which arises not from the normal course of the business. Profit on sale of fixed asset is an example for capital profits.

i) Capital expenditure
ii) Revenue receipt
iii) Capital expenditure
iv) Capital receipt.

According to J.R. Batliboi, "A trial balance is a statement, prepared with the debit and credit balances of the ledger accounts to test the arithmetical accuracy of the books".

Entries in the purchases day book are made from invoices which are popularly known as "Bills".

It is the amount of cash or value of goods, assets, etc., withdrawn from the business by the proprietor for his personal use

According to R.N. Carter defines, "Book keeping is the science and art of recording correctly in the books of account all those business transactions of money or money's worth".

An accountant designs the accounting procedures for an enterprise. He plays several roles in an organisation as follows:
(i) Record keeper :
1. The accountant maintains a systematic record of financial transactions.
2. He also prepares the financial statements and other financial reports.
(ii) Provider of information to the management :
The accountant assists the management by providing financial information required for decision making and for exercising control.
(iii) Protector of business assets :
The accountant maintains records of assets owned by the business which enables the management to protect and exercise control over these assets.
(iv) Financial advisor :
The accountant analyses financial information and advises the business managers regarding investment opportunities, strategies for cost savings, capital budgeting, provision for future growth and development, expansion of enterprise, etc.
(v) Tax Manager :
1. The accountant ensures that tax returns are prepared and filed correctly on time and payment of tax is made on time.
2. The accountant can advisee the managers regarding tax management, reducing tax burden, availing tax exemptions, etc.
(vi) Public relation officer :
The accountant provides accounting information to various interested users for analysis as per their requirements.

Following are the three methods of codification.
(a) Sequential Codes:
(i) In sequential code, numbers and/or letters are assigned in consecutive order.
(ii) These codes are applied primarily to source documents such as cheques, invoices, etc.
(iii) A sequential code can facilitate document search. For example:
CODE ACCOUNTS:
CL001 ABC LTD
CL002 XYZ LTD
CL003 SCERT
(b) Block Codes:
(i) In a block code, a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group;
(ii) Inmost of the cases of block codes, numbers within a sub-range follow sequential coding scheme, i.e. the numbers increase consecutively. For example:
CODE DEALER- TYPE :
100 - 199 Small pumps
200 - 299 Medium pumps
300 - 399 Pipes
400 - 499 Motors
(c) Mnemonic Codes:
A mnemonic code consists of alphabets or abbreviations as symbols to codify a piece of information.
For example:
CODE:
SJ Sales Journals
HQ Head Quarters

Despite of many advantages, double entry system has some disadvantages which are as follows:
(i) Double entry system is complex and hard to understand.
(ii) It involves time, labour and money, so it is not possible for small business to keep accounts under this system.
(iii) It required expert knowledge to keep accounts under this system.
(iv) As the system is complex, there is greater possibility of committing errors and mistakes.

The following are the limitations of trial balance.
(i) It is possible to prepare trial balance of an organisation, only if the double entry system is followed.
(ii) Even if some transactions are omitted, the trial balance will tally.
(iii) Trial Balance may tally even though errors are committed in the books of account.
(iv) If trial balance is not prepared in a systematic way, the final accounts prepared on the basis of trial balance may not depict the actual state of affairs of the concern.
(v) Agreement of trial balance is not a conclusive proof of the arithmetical accuracy of entries made in the accounting records.

The internal users comprise of owners, management and employees who are within the organisation.
(i) Owners:
1. The owners of a business furnish capital to be used for the purpose of business.
2. They are interested to know whether the business has earned a profit or loss during a particular period and also its financial position on a particular date.
(ii) Management:
1. Accounting data are the basis for most of the decisions made by the management.
2. The trends in sales and purchases, relationship of expenses to the turnover, productivity of workers, comparative profitability of different products and divisions etc.
(iii) Employees:
1. The employees are interested in the profit earing capacity of the business which will affect their salary, bonus, incentives and working conditions.
2. Labour unions use the accounting data in their bargaining strategies with the management.

(i) Accounting Standards provide the framework and norms so that the financial statements of different enterprises become comparable.
(ii) It becomes necessary to standardise the accounting principles and policies to ensure consistency, comparability, adequacy and reliability of financial reporting.
(iii) Accounting standards in India are issued by the Institute of Chartered Accountants of India (lCAI).
Definition:
In the words of Kohler, "Accounting standards are codes of conduct imposed by customs, law or professional bodies for the benefit of public accountants and accountants generally".