A person who gives a benefit without receiving money or money's worth immediately but to claim in future.

There are three parties to a bill of exchange. They are:
1. Drawer
2. Drawee
3. Payee

Yes, trial balance helps in preparing the financial statements by making available the balances of all the accounts at one place.

The total amount of debts payable by a business to the outsiders are called external liabilities. (e.g.) creditors, bills payable etc

All accounts relating to tangible and intangible properties and possessions are called real accounts

(i) The Consistency convention implies that the Accounting practice should remain the same from one year to another.
(ii) The results of different years will be comparable only when same accounting methods are followed from year to year.
(iii) The firm should be modify the method of charging the depreciation from one to another.
(iv) If any change has to be incorporated, valid reasons for such a change should be emphasised.

The Steps involved in accounting are :
(i) Identifying the transactions and Journalising.
(ii) Posting and Balancing.
(iii) Preparation of Trial Balance.
(iv) Preparation of Trading Account.
(v) Preparation of Profit and Loss Account.
(vi) Preparation of Balance Sheet.

Closing entries are recorded at the end of the accounting year for closing the accounts relating to expenses and revenues. The accounts are closed by transferring the balances to the Trading Alc and Profit and Loss A/c.
Example: On 31.12.2013 salaries account shows Rs. 15,000 - the closing entry is,

Date	Particulars		L.F.	Debit Rs.	Credit Rs.
31.12.13	Profit and Loss A/c	Dr.		15,000
	To Salaries A/c				15,000
	(Closing entry for the salaries A/c)

The journal entries may be of the following types:
1) Single entry
2) Compound entry
3) Opening entry
4) Closing entry
1) Single entry: Single entry is an entry in which only two accounts are involved, one account is debited and another is credited.
2) Compound entry: Compound entry is an entry in which more than two accounts are involved. Either more than one account is debited or more than one account is credited or both.
3) Opening entry: Through opening entry- the balances of assets and liabilities at the end of the previous accounting year are brought forward to the current accounting year.
4) Closing entry: At the 'end of the accounting period, the nominal accounts are closed by transferring to trading account or profit and loss account. All direct expenses and direct revenues are transferred to Trading Account. All indirect expenses and indirect revenues are transferred to Profit and Loss Account.
5) Rectifying entry: Rectifying entries are passed to make correction of errors in accounting.
6) Adjusting entry: Adjusting entry is the made for die transactions which remain unrecorded or require adjustment after closing the accounts for the accounting year.
7) Transfer entry: Transfer entry is the entry through which amount is transferred from one account to another account.

S.no	Transaction	Cash	Stock	Debtors	Total Assets		Total Liabilities	Capital	Creditors
i)	Ramya started business	+25,000	-	-				+25,000
	Balance	+25,000						+25,000
	Equation				+25,000	=	+25,000
ii)	Credit purchases		+20,000						+20,000
	Balance	+25,000	+20,000					+25,000	+20,000
	Equation				+45,000	=	+45,000
ii)	Credit Sales		-18,000	+25,000				+,7000
	Balance	+25,000	+2,000	+25,000				+32,000	+20,000
	Equation				+52,000	=	+52,000
iv)	Cash withdraw for personal use	-5,000						-5,000
	Balance	+20,000	+2,000	+25,000				+27,000	+20,000
	Equation				+47,000	=	+47,000

Total assets = Cash + Debtors + Machinery + Stock
= Rs. 5,000 + Rs. 20,000 + Rs. 60,000 + Rs. 25,000
= Rs. 1,10,000
Capital = Rs. 75,000
Liabilities = Total Assets - Capital
= Rs. 1,10,000 - Rs. 75,000
= Rs. 35,000

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.

Yes, Agree this statement.
The fundamental principle of the double-entry system of book-keeping is that every debit has a corresponding and equal credit and vice versa. Therefore, the total of the debit balances must be equal to the total of the credit balances. When such agreement between the total of all debit balances and the total of all credit balances takes place, it offers an immediate and apparent proof of arithmetical accuracy of the book-keeping work on a particular day. At the same time, it should not be taken as the conclusive proof of arithmetical accuracy as certain errors, such as error of principle compensating errors and complete omission of a transaction are not disclosed by the trial balance.

(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".

Bank Reconciliation Statement of Ms. Aparna as on 30.6.2014

Particulars	Amount (Rs)	Amount (Rs)
Balance as per pass book		25,500
Add : (All credit items)
Cheques paid into bank not credited	1,800
Cheque received but not paid into bank	540
Insurance premium paid by the bank	500	2,840
		28,340
Less: (All debit items)	3,200
Cheques issued but not presented Interest and dividend collected by bank	1,500	4,700
Balance as per cash book		23,640

In the books of Bragathish Journal entries

Date	Particulars	L.F	Debits Rs	Credit Rs
2018 March 1.	Purchases A/c  Dr. To Y and Co. A/c (Goods purchased on credit)		60,000	60,000
2.	D and Co. A/c  Dr. To Sales A/c (Credit sales made to D and Co.)		30,000	30,000
3.	Y and Co.A/c  Dr. To Bank A/c To Discount received A/c (Payment made to Y and Co. and discount received).		60,000	58,000 2,000
4.	Bills Receivable A/c  Dr. To D and Co. A/c (Bills received from D and Co.)		30,000	30,000
5.	L A/c  Dr. To Sales A/c (Goods sold on credit to L)		20,000	20,000
6.	M A/c  Dr. To Sales A/c (Goods sold on credit to M)		40,000	40,000
7.	Bank A/c  Dr. Discount allowed A/c To M A/c (Cheque received and discount allowed).		39,000 1,000	40,000
8.	Y and A/c  Dr. To Purchases returns A/c (Goods returned to Y and Co.)		4,000	4,000
9.	Cash A/c (20,000 x 0.9)  Dr. Bad debts A/c  Dr. To L A/c (Cash received from L in final settlement.		18,000 2,000	20,000
10.	Sales returns A/c To M A/c (Goods returned by M).		3,000	3,000

S.No.	Transaction	Cash	Stock	Debtors	Furniture	Total Assets		Total Liabilities	Creditors	Capital
i)	Started Business with Cash	+1,75,000	0	0	0					+1,75,000
	Balance	+1,75,000								+1,75,000
	Equation					+1,75,000	=	+1,75,000
ii)	Purchased goods from Rohit		+ 50,000						+50,000
	Balance	+1,75,000	+ 50,000						+50,000	+1,75,000
	Equation					+2,25,000	=	+2,25,000
iii)	Sold goods on credit Manish		-17,500	+ 20,000						+ 2,500
	Balance	+1,75,000	+ 32,500	+ 20,000					+50,000	+1,77,500
	Equation					+2,27,500	=	+2,27,500
iv)	Purchase furniture for office use	- 10,000			+ 10,000
	Balance	+1,65,000	+ 32,500	+20,000	+ 10,000				+50,000	+1,77,500
	Equation					+2,27,500	=	+2,27,500
v)	Cash paid to if Rohit in full settlement	- 48,500							-50,000	+ 1,500
	Balance	+1,16,500	+ 32,500	+ 20,000	+ 10,000				0	+1,79,000
	Equation					+1,79,000	=	+1,79,000
vi)	Cash received from Manish	+ 20,000		-20,000
	Balance	+1,36,500	+ 32,500	0	+ 10,000				0	+1,79,000
	Equation					+1,79,000	=	+1,79,000
vii)	Rent Paid	-1,000								-1,000
	Balance	+1,35,500	+ 32,500	0	+ 10,000				0	+1,78,000
	Equation					+1,78,000	=	+1,78,000
viii)	Cash withdrew for Personal use	- 30,000								- 30,000
	Balance	+ 1,05,500	+ 32,500	0	+ 10,000				0	+1,48,000
	Equation					+1,48,000	=	+1,48,000

S.No	Bank column of Cash book	Bank Statement
1	It is prepared by business concern	Is is prepared by bank [banker].
2	Cash deposits are entered on the debit side	Cash deposits are entered on the Credit column.
3	Cheque' deposits are debited on the day of deposit.	Cheque deposits are credited only at the time of realisation of cheque.
4	Cash withdrawals are entered on the credit side	Cash withdrawals are entered on the debit column
5	Cheques issued are credited on the day of issue of cheque	Cheques issued by customers are debited by bank on the date on which the payment is made
6	Collections and payments as per standing instructions of the business are entered only after checking with the bank pass book	Collections and payments as per standing instructions of the business are entered in the banker's book on the date of realisation or payment
7	It is balanced at the end of a specific period	It is balanced after each transaction

In the Books of M/s. Sunil & Co., Sales Book

Date	Particulars	Outward Invoice No.	L.F.	Amount
				Details (Rs)	Total (Rs)
2013 Apr 1	Ramesh				1,000
Apr 5	Kumar				2,200
Apr 8	Shankar				300
	Sales A/c    Cr.				3,500

Dr.                                                Ledger Accounts Sales Account                                                Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
				2013 Apr 30	By sundries as per sales book		3,500

Dr.                                        Ramesh Account                                                 Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2013 Apr 1	To Sales A/c		1,000

Dr.                                   Kumar's Account                                                     Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2013 Apr 5	To Sales A/c		2,200

Dr.                                      Shankar's Account                                               Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2013 Apr 8	To Sales A/c		300

Sales Return Book

Date	Particulars	Credit Note No.	L.F.	Amount		Remarks
				Details (Rs)	Total (Rs)
2013 Apr 10	Kumar				600	The Invoice over changed
Apr 15	Shankar				200
	Sales return A/c  Dr.				800

Dr.                                                                  Sales Return Book                                                           Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2013 Apr 30	To Sundries as per Sales return Book		800

Dr.                                                      Kumar's Account                                                  Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
				2013 Apr 10	By Sales Return A/c		600

Dr.                                                     Shanker's Account                                             Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
				2013 Apr 15	By Sales Return A/c		200

S.No.	Transaction	Cash Rs.	Stock Rs.	Bank Rs.	Furniture Rs.	Total Assets Rs.	=	Total Liabilities Rs.	Capital Rs.
a)	Started business with cash	+80,000							+80,000
	Balance	+80,000							+80,000
	Equation					+80,000	=	+80,000
b)	Cash purchases	-30,000	+30,000
	Balance	+50,000	+30,000						+80,000
	Equation					+80,000	=	+80,000
c)	Paid salaries by cash	-5,000							-5,000
	Balance	+45,000	+30,000						+75,000
	Equation					+75,000	=	+75,000
d)	Deposited money in CDM	-5,000	+5,000
	Balance	+40,000	+35,000						+75,000
	Equation					+75,000	=	+75,000
e)	Introduced additional capital	+10,000							+10,000
	Balance	+50,000	+35,000						+85,000
	Equation					+85,000	=	+85,000

S.No	Basis of distinction	Book-keeping	Accounting
1	Scope	It is concerned with recording and classification the business transaction	It is concerned with recording, classification, summarising, analysing and interpreting the financial data
2	Stage	Book-keeping is the primary stage in accounting. It is the base for Accounting.	Apart from the primary stage, it includes secondary stage of analysis and interpretation.
3	Nature of job	It is routine and clerical in nature.	It is analytical in nature
4	Knowledge required	It requires basic knowledge of the principles of journalising and posting	It requires thorough knowledge of accounting principles, procedures, and practices.
5	Skill required	Analytical skill is not required for book-keeping.	It requires analytical skill