Dr.                                            Furniture Account                                                            Cr.

Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2016 Jan 1	To Cash A/c		2,000	2016 Jan 30	By Cash A/c		400
11	To Cash A/c		4,000	31	By Balance c/d		5,600
			6,000				6,000
2016 Feb 1	To Balance b/d		5,600

(i) Single column cash book has only one amount column, i.e., cash column. Only cash transactions are recorded in this book.
(ii) All cash receipts and payments are recorded systematically in this book.

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

Trial balance is prepared in the following format under the balance method.
Trial balance As on...............

S.No	Name of account/particulars	L.F	Debit balance Rs	Credit balance Rs

(i) Measurement :
1. The main function of accounting is to keep systematic record of business transactions, post them to the ledger and ultimately to prepare the final accounts.
2. It also shows the current financial position of the business enterprises.
(ii) Comparison :
1. Accounting helps to compare the actual performance with the planned performance.
2. It is also possible to compare with the accounting policies.

In the books of Arun Journal entries

Date	Particulars	L.F.	Debit Rs	Credit Rs
2018 Jan. 1	Cash A/c Dr. To Arun's capital A/c (Arun commenced business with cash)		90,000	90,000
2.	Purchases A/c  Dr. To X and Co. A/c (Credit purchases made)		40,000	40,000
3.	X and Co.A/c  Dr. To Bills payable A/c (Bill drawn by X and Co. accepted)		20,000	20,000
4.	D and Co.A/c  Dr. To Sales A/c (Goods sold on credit)		10,000	10,000
5.	Bills payable A/c  Dr. To Cash A/c (Bills payable paid)		20,000	20,000
6.	Bank A/c     Dr. Discount A/c Dr. To D and Co. A/c (Cheque received from D and Co. in full settlement)		9,000 1,000	10,000
7.	Cash A/c  Dr. To Commission A/c (Commission received in cash)		5,000	5,000
8.	Cash A/c  Dr. To Sales A/c (Cash sales made)		50,000	50,000
9.	Salies A/c  Dr. To Cash A/c (Salaries paid in cash)		4,000	4,000
10.	Buildings A/c  Dr. To Cash A/c To Kumar and Co. A/c (Building bought by giving advance money)		1,00,000	20,000 80,000

S.No.	Transaction	Cash Rs.	Stock Rs.	Bank Rs.	Furniture Rs.	Debtors Rs.	Total Assets Rs.	=	Total Liabilities Rs.	Capital Rs.
a)	Started business with cash and goods	+1,40,000	+60,000							+2,00,000
	Balance	+1,40,000	+60,000							+2,00,000
	Equation						+2,00,000	=	+2,00,000
b)	Furniture purchased	-20,000			+20,000
	Balance	+1,20,000	+60,000		+20,000					+2,00,000
	Equation						+2,00,000	=	+2,00,000
c)	Depreciation on furniture				-800					-800
	Balance	+1,20,000	+60,000		+19,200					+1,99,200
	Equation						+1,99,200	=	+1,99,200
d)	Deposited into Bank	-40,000		+40,000
	Balance	80,000	+60,000	+40,000	+19,200					+1,99,200
	Equation						+1,99,200	=	+1,99,200
e)	Paid electricity charges			-500						-500
	Balance	+80,000	+60,000	+39,500	+19,200					+1,98,700
	Equation						+1,98,700	=	+1,98,700
f)	Sold goods for cash		-10,000			+15,000				+5000
	Balance	+80,000	+50,000	+39,500	+19,200	+ 15,000				+2,03,700
	Equation						+2,03,700	=	+2,03,700
g)	Returned goods		+ 7500			-5000				+2500
	Balance	+80,000	+57,500	+39,500	+19,200	+ 10,000				+2,06,200
	Equation						+2,06,200	=	+2,06,200

Importance of accounting is enumerated as below :
(i) Systematic records :
1. All the business transactions are recorded in the books of accounts.
2. Any event or happening which has financial effects is included in the accounting records.
(ii) Preparation of financial statements :
Results of business operations and the financial position of the concern are provided by accounting periodically through the preparation of financial statements namely profit and loss account and balance sheet.
(iii) Assessment of progress :
Analysis and interpretation of financial statements can be done to assess the progress made in different areas and it also identify the areas of weaknesses.
(iv) Information to interested groups :
Accounting supplies appropriate information to different interested groups 'like owners, creditors, management, employees, financiers, tax authorities, and government.
(v) Taxation :
Accounting records are the basis source for computation and settlement of sales tax, income tax, and other local taxes.

In the books of Murali Trial balance as on 31st March, 2017

S.No.	Name of the account	L.F.	Debit balance Rs.	Credit balance Rs.
1.	Sales			35,000
2.	Interest paid		350
3.	Returns inward		2,500
4.	Depreciation		2,400
5.	Office rent		2,000
6.	Audit fees		1,000
7.	Octroi duty		2,000
8.	Land		90,000
9.	Capital			60,000
10.	Bank overdraft			11,250
Total			1,06,250	1,06,250

(i) When the cheques are issued by the business, it is immediately entered on the credit side of the cash book by the business.
(ii) But, this may not be entered in the bank statement on the same day.
(iii) It will be entered in the bank statement only after it is presented with the bank.
(iv) It is also known as an outstanding cheque.

Personal account:
Account relating to persons is called personal account. The personal account may be natural, artificial or representative personal account
a) Natural person's account: Natural person means human beings. Example: Vinoth account, Malini account.
(b) Artificial person's account: Artificial person refers to the persons other than human beings recognised by law as persons. They include business concerns, charitable institutions, etc. Example: BHEL account, Bank account.
(c) Representative personal accounts: These are the accounts which represent persons natural or artificial or a group of persons. Example: Outstanding salaries account, Prepaid rent account. When expenses are outstanding, it is payable to a person. Hence, it represents a person.

(i) The debit and credit columns of an account are to be totalled separately.
(ii) The difference between the two totals is to be ascertained.
(iii) The difference is to be placed in the amount column of the side having lesser total. 'Balance c/d' is to be entered in the particulars column against the difference and in the date column the last day of the accounting period is entered.
(iv) Now both the debit and credit columns are to be total and the totals will be equal. The totals of both sides are to be recorded in the same line horizontally.
(v) The total is to be distinguished from other figures by drawing lines above and below the amount.
(vi) The difference has to be brought down to the opposite side below the total.
(vii) 'Balance b/d' is to be entered in the particulars column against the difference brought down and in the date column, the first day of the next accounting period is entered.
(viii) If the total on the debit side of an account is higher, the balancing figure is debit balance and if the credit side of an account has higher total, the balancing figure is credit balance. If the two sides are equal, that account will show nil balance.

(d) Suspense account
Reason: Suspense account is prepared to avoid the delay in the preparation of final accounts. Other three details are entered in the various columns of the petty cash book.

(d) Bad debt
Reason: Bad debt is ·a loss to the business arising out of failure of a pebtor to pay the dues. Other three are commonly used in source documents.

(d) Book Keeping
Reason: Book Keeping is the process of recording financial transactions in the books of accounts. Other three are important accountmg concepts

(d) Endorsement - Trade discount

(c) Dual aspect Capital concept - Liabilities = Assets

(b) Sales book - Credit sale of goods

(a) IFRS - International Financial Reporting Standards