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Introduction to Accounting — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountIntroduction to Accounting6 Marks
Question
Explain the factors which necessiated systematic accounting.
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Answer

Main purpose of accounting is to provide information to a variety of users for taking various decisions. Hence the information should have the quality of reliability, understandability and comparability which is possible only if the accounting is carried out systematically i.e. based on principles and rules of accounting. Further, the role of accounting has been changing with the changes in economic development and increasing social demands, which requires analyses of accounting data and preparation of reports. Systematic recording is also needed for assessment of various taxes such as Goods and Service Tax (GST), Income Tax etc.

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2017  
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Jan. 5 Returned to Manohar Lal & sons goods of the list price of ₹ 2,000
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Jan. 16 Withdrew for personal use: Cash ₹ 5,000 and goods ₹ 3,000
Jan. 17 Accepted a bill for 45 days drawn by Niranjan Lal for the amount due to him
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