Question

One of my friends, Yash, visited at my place and told me that he is planning to start a grocery shop then I casually asked him how he is going to manage all he aspects related to money. I was surprised to note that he is not going to maintain any accounting book and will not going to make his task cumbersome related to money. He also said that he will do all the transactions in cash, so there will be no problem of remembering any credit transaction. I further asked him about the investment and the nature of goods which he is going to sell. Yash informed me that he will invest Rs. 30,00,000 in the store and will sell daily edible items like Pulses, Rice, Wheat, Sugar, Salt etc. All these items are easily available by a wholesaler who will also give time of 3 months for making payments.

after all this conversation I requested him to meet a chartered accountant, CA Anil Sharma, who can help him to understand the importance of Accounting and maintaining the books, calculation

of profits and payment of taxes etc.

Assume yourself as

i) Yash and explain the various aspects from the perspective of a business owner.

ii) Charted Accountant- Mr. Sharma and define the importance of Financial Accounting such as

objectives, concepts and terms, discussed in this case study, which are necessary to know for a

business person/owner.​

Answer 1

Explanation:

It's a very very long question and I am also can't understand your question