The need for accounting standards is:
1. To promote better understanding of financial statements.
2. To help accountants to follow uniform procedures and practices.

1. To keep a systematic record of financial transactions and events.
2. To ascertain the profit or loss of the business enterprise.

They are maintaining single entry systems, so the cash book and personal accounts are being maintained by them. The nominal accounts are not being maintained by them, so we can not find out the accurate profit or loss on the business. We can find out the estimated value only.

(i) A proper codification requires a systematic grouping of accounts.
(ii) The major groups or heads could be Assets, Liabilities, Revenues and Expenses.
(iii) The sub-groups or minor heads could be capital, non-current liabilities, current assets, sales and so on.
(iv) The grouping and codification depend upon the size and requirements of the organisation.

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

(i) Under this method, the amount spent on the purchase of an asset is regarded as an investment. As such, the interest at a certain rate is calculated on the opening balance of the asset account each year and debited to the asset account.
(ii) The amount of depreciation written off is ascertained by- referring to the annuity table. Annual depreciation is uniform throughout the working life of the asset.

(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.

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

Yes, as the source documents for recording entries in the sales book are invoices or bills issued to customers.

In the Books of M/s. Jain Fashion Wears Sales Book

Date	Particulars	Outward Invoice No.	L.F.	Amount
				Details (Rs)	Total (Rs)
2015 Feb 1	M/s. Om & Sons	182
	72 Kurtas @ Rs. 175 each			12,600
	45 Trousers @ Rs. 225 each			10,125
				22,725
	Less : Trade Discount @ 5%			1,136	21,589
Feb 5	M/s. Deepti & Co.	282
	50 Long Shirts @ Rs. 185 each			9,250
	65 Jeans @ Rs. 235 each			15,273	24,525
	Sales A/c                   Cr.				46,114

Trial Balance

S.No	Name of account	L.F.	Debit balance Rs	Credit balance Rs
1	Purchases		2,00,000
2	Bank loan			1,50,000
3	Debtors		3,00,000
4	Stock		70,000
5	Sales			3,00,000
6	Creditors			1,00,000
7	Cash		1,80,000
8	Capital			2,00,000
	Total		7,50,000	7,50,000

(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.

S.No.	Transactions	Classification
i)	Construction of building Rs.10,00,000	Capital expenditure
ii)	Repairs to furnitures Rs.50,000	Revenue expenditure
iii)	White-washing the building Rs.80,000	Revenue expenditure
iv)	Pulling down the old building and rebuilding Rs.4,00,000.	Capital expenditure

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

In the Books of Purchases Book

Date	Particulars	Inward Invoice No.	L.F.	Amount
				Details (Rs)	Total (Rs)
2017 Dec 1	Sumathi				17,800
Dee 6	Mani				7,000
Dee 21	Raghunathan				10,000
	Purchases A/c    Dr.				34,800

In the Books of Sales Book

Date	Particulars	Outward Invoice No.	L.F.	Amount
				Details (Rs)	Total (Rs)
2017 Dee 4	Rani				15,200
	Sales to Rani
Dee 10	Saranya				12,500
	Sales to Saranya
Dee 17	Hussain				13,250
	Sales to Hussain
	Sales A/c         Cr.				40,950

Note: Sold goods to Shyam for cash on Dec. 26, 2017 will not be recorded in the sales book, because it is cash sales.

In the books of Rajesh Trial Balance as on 31.03.2017

S.No	Name of account	L.F.	Debit balance Rs	Credit balance Rs
1.	Bills receivable		13,000
2.	Bank Charges		750
3.	Conveyance Charges		350
4.	Discount received			1,300
5.	Cash in hand		1,000
6.	Drawings		7,000	1,675
7.	Sundry Debtors		17,100
8.	Bills payable			12,000
9.	Capital			25,900
	Total		39,200	39,200

In the books of Mr. Balakrishnan Trial Balance as on 31.12.2017

S.No	Name of account	L.F	Debit balance  Rs	Credit balance  Rs
1	Capital			2,00,000
2	Drawings		18,000
3	Furniture		64,500
4	Stock at the beginning		62,050
5	Bills receivable		7,500
6	Bills payable			8,750
7	Purchases		88,100
8	Sales			1,35,450
9	Discount allowed		7,100
10	Discount received			3,500
11	Repairs		2,400
12	Office lighting		2,600
13	Printing and Stationery		2,700
14	Bank loan			17,500
15	Computer		30,000
16	Debtors		46,500
17	Cash in hand		17,000
18	Cash at bank		27,250
19	General expenses		7,100
20	Creditors			17,600
	Total		3,82,800	3,82,800

Book-keeping has the following advantages:
(i) Transactions are recorded systematically in chronological order in the book of accounts. Thus, book-keeping provides a permanent and reliable record for all business transactions.
(ii) Book-keeping is useful to get the financial information.
(iii) It helps to have control over various business activities.
(iv) Records provided by business serve as a legal evidence in case of any dispute.
(v) Comparison of financial information over the years is possible. Also comparison of financial information of different business units is facilitated.
(vi) Book-keeping is useful to find out the tax liability.

External users are the persons who are outside the organisation but make use of accounting information for their own purposes. They are:
(i) Creditors and Financial institutions:
1. Suppliers of goods and services, commercial banks, public deposit holders, debenture holders etc; are included in this category.
2. They are interested in the liquidity position and repaying capacity of the business to know the safety of getting the interest and get back the principal amount.
(ii) Investors:
1. Persons who are interested in investing their surplus funds should know about the financial condition of a business unit while making their investment decisions.
2. They are more interested in future earning and risk.
(iii) Customers :
1. Those who use the products and services of a firm are interested in knowing the justification for the prices charged to them.
2. They examine the expenses, sales and profits to see if they are paying fair prices for the products and services.
(iv) Tax authorities:
1. Accounting information helps them in computing goods and services Tax, Income tax etc., to be collected from business units.
2. They scrutinise the revenues and expenses of business firms to determine their accuracy. "
(v) Government:
1. Government also administers prices of certain trades.
2. In such cases, government agencies have to ensure that the guidelines for pricing are followed.
vi) Researchers:
Researchers to carry out their research can make use of the published financial statements in their analysis and evaluation.

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) Input Devices:
(a) Keyboard
(b) Optical scanner
(c) Mouse
(d) Joystick
(ii) Output Devices:
(a) Monitor
(b) Printer

Procedure
i) Open a new spread sheet in MS-Excel.
ii) Enter the data in cells from A1 to J2 as in the question
iii) To get the Number of cells containing numbers only, write the formula in B3
= COUNT(A1:J2)
iv) To get Number of cells that contain any value, write the formula in B4
= COUNTA(A1:J2)
v) To get the Number of cells which have values exceeding 1000, write the formula in B5
= COUNTIF(A1:J2,”>1000”)
Answer
A) 12 B) 18 C) 2 b) Text functions

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.

a) Capital:
(i) Capital is the amount invested by the owner in an organisation.
(ii) This amount is increased by the profit of the business and the amount of additional capital introduced.
b) Assets:
(i) Any physical thing or right owned that has a monetary value is called assets.
(ii) Assets can be classified into tangible and intangible.
(iii) Tangible assets are those having physical existence. It can be seen and touched.
(iv) Intangible assets are those assets having no physical existence. It cannot be seen and touched.
c) Liabilities:
(i) Liabilities refers to the financial obligations of a business.
(ii) For example, loans from banks or other persons, creditors for goods supplied, bills payable, outstanding expenses, bank overdraft etc

(i) "Business units last indefinitely". This statement is used in Going Concern Concept.
(ii) Going concern concept influences Accounting practices in relation to valuation of assets and liabilities, depreciation of the fixed assets, treatment of outstanding and prepaid expenses and Incomes.
(iii) The values involved in the going concern concept are
1. Growth: By following the going concern concept, business activities are to be carried out for future growth. 
2. Preparing for future: By following the going concern assumption, business firm always intends to prepare for the future.