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

Cost of the asset = Purchase price + Installation cost
= 14,000 + 1,000 = Rs.15,000
Journal entries

Ledgers

Procedure
i) To fill the address
a. Open a new spreadsheet in MS-Excel
b. Enter all given values as given in the question
c. Enter the formula in the cell B3 as
=CONCATENATE(A2,” “,B2,” “,C2,” “,D2,” “,E2)
ANAND 123 KAMARAJAR SALAI Chennai 600018
ii) To change KAMARAJAR SALAI given in C2 as lower case in C3
Enter the formula in the cell C3 as
=LOWER(C2)
kamarajar salai
iii) To change Chennai given in D2 as upper case in D3
Enter the formula in the cell D3 as
=UPPER(D2)
CHENNAI

Accounting cycle is the sequence of steps involved in the accounting process. Accounting cycle starts with the identification and recording of financial transactions of an organisation and ends with the preparation of final accounts for the accounting year. The steps involved are:
(i) Identifying the transactions and journalising :
(1) The first step in the accounting process is identifying the financial transactions of a business.
(2) All the monetary transactions are recorded in the books of original entry called journals.  
(ii) Posting and balancing:
(1) Transferring the entries from the journal. to the ledger is called posting.
(2) In the ledger, entries are made in each account after classifying them under common heads. Finding the difference between the total of the debit column and credit column of all the ledger accounts is called balancing.
(iii) Preparation of trial balance:
(1) The list of ledger balances namely trial balance is prepared as the next step.
(2) On the basis of ledger balances the financial statements are prepared.
(iv) Preparation of trading account:
(1) Next step is preparation of trading account for a particular accounting period.
(2) All the direct revenues and direct expenses are transferred to trading account.
(3) The balance in the trading account is the gross profit or gross loss.
(v) Preparation of profit and loss account:
(1) Profit and loss account is prepared next for a particular accounting period.
(2) All the indirect revenues and indirect expenses along with gross profit or gross loss are transferred to profit and loss account.
(3) The balance in the profit and loss account is the net profit or net loss.
(vi) Preparation of balance sheet:
(1) A statement showing the balances of assets and liabilities namely balance sheet is prepared as the final step in the accounting process.
(2) It is prepared on a particular date, normally, on the last day of the accounting period.

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.

(i) Debts which cannot be recovered or become irrecoverable are called Bad debts.
(ii) It is a loss for the business and should be adjusted against profit.

Credit balance as per bank statement is Rs. 17,700

This system is not suitable for all business because the actual profit or loss can not be found out by this system. If it is a small business only can follow this system.

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

\( \text { Amount of depreciation per year } =\frac{\text { Original cost of the asset }-\text { Estimated scrap value }}{\text { Estimated useful life of the asset in years }} \)
\(={10,000-2,000\over 10}={8,000\over 10}\) = Rs.800 per year
Rate of depreciation = \({Amount\ of\ depreciation\ per\ year\over Original\ cost}\times100\)
\(={800\over 10,000}\times100=8\%\)

(i) It is an expenditure incurred during an accounting period, the benefits of which will be available for more than one accounting period.
(ii) It includes any expenditure resulting in the acquisition of any fixed asset or contributes to the revenue earning capacity of the business. It is non- recurring in nature.

'Debit all expenses and losses and Credit all incomes and gains'. For nominal accounts, the rule is debit all expenses and losses and credit all incomes and gains

(i) Transactions relating to previously purchased goods returned to the suppliers are recorded in a separate subsidiary book which is called purchases returns book.
(ii) Since goods are 'going out' to the suppliers, they are also known as 'returns outward' and the book is called as 'returns outward book or returns outward journal'.

The purpose of journal proper: The journal proper is used to record the following entries.
(i) Opening entries: They are used at the beginning of the financial year to open the books by recording the assets and liabilities and capital appearing in the Balance Sheet of the previous year. 
Example: On 1st January 2014, Mr. Ramesh commenced his business with the following items. Cash Rs. 30,000; Furniture Rs. 3,000; Stock Rs. 15,000; Creditors Rs. 10,000
The opening entries in the journal proper is:

(ii) 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 A/c and Profit and Loss A/c.
(iii) Adjusting entries: To arrive at a correct profit or loss at the time of preparing final accounts certain accounts require some adjustments. Entries for making such adjustments are called
adjusting entries
Example: On 31st December 2013, it is decided to provide depreciation @ 10% p.a. on furniture.
Furniture value is Rs. 1,00,000.
The adjusting entry is:

(iv) Transfer entries: They are passed in the journal proper for transferring an item entered in one account to another account.
Example: When the proprietor takes goods for Rs. 5,000 for personal use, the drawing A/c is transferred to purchases A/c. The entry is,

(v)Rectifying entries are passed for rectifying the errors which might have committed in the books of accounts.
Example: Purchase of furniture for Rs. 10,000 was wrongly debited in Purchases A/c. To rectify the error the following entry is to be passed. 

(vi) Miscellaneous entries or Entries of casual nature: These are entries which do not occur so frequently.
Examples of such transactions:
(a) Credit purchases and credit sales of assets which cannot be recorded in purchases or sales book.
(b) Endorsement, renewal and dishonour of bills which cannot be recorded in bills book.
(c) Other adjustments like interest on capital, interest on loan, bad debts, reserves, etc., , 

Book-keeping is part of Accounting. It is the primary stage in accounting. It is the process of recording transactions in the books of accounts.
Accounting is part of Accountancy. Accounting is the process of recording, classifying, analysing and interpreting of financial data. Accountancy is the systematic knowledge of accounting process and contains the standards, principles, policies and procedures to be followed in accounting.

Posting of a Compound Journal Entry: Compound or Combined journal entry is one where more than one transactions are recorded by passing only one journal entry instead of passing several journal entries. Since every debit must have the corresponding equal amount of credit, special care must be taken in posting the compound journal entry, where there may be only one debit aspect but many corresponding credit aspects of equal value or vice versa.
Example: Jan. 15,2018, Cash Sales Rs. 10,000 cash received from Kannan Rs. 5,000 and commission earned Rs. 2,500.

Bad debts
(i) Debts which cannot be recovered or become irrecoverable are called bad debts.
(ii) It is a loss for the business and should be adjusted against profit
Provision for doubtful debts:
In addition to the actual bad debts, a business unit may estimated at the end of the accounting period that certain debts are doubtful, i.e., the amount to be received from debtors mayor may not be received.
Provision for discount on debtors:
(i) Cash discount is allowed by the suppliers to customers for prompt settlement of cash.
(ii) A provision created on sundry debtors for allowing such discount is called provision for discount on debtors.

Procedure
1. Open new excel sheet.
2. Input the table as given in the question.
3. Enter the data “Achieved” in Cell D1.
4. Type the following in Cell D2:
= OR (B2 > = 500,C2 > = 500)
5. Copy the formula from D2 into D3 and D4
Output

When the two accounts involved in a transaction are cash account and bank account, then both the aspects are entered in cash book itself. As both the debit and credit aspects of a transaction are recorded in the cash book, such entries are called contra entries.
Example:
(i) When cash is paid into bank, it is recorded in the bank column on the debit side and in the cash column on the credit side of the cash book.
(ii) When cash is drawn from bank for office use, it is entered in cash column on the debit side and in the bank column on the credit side of the cash book.

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.