A study on Accounting Practices of Wholesale and Retail Business Organisation in Gujarat

In the modern knowledge and technology based economy and information backed-up competitive business world, quick and reliable availability of accounting information is a pre-condition for success of business. But most of businessmen give less attention towards accounting of their business transactions. They usually concentrate more on selling and buying of their products and this has been more in case of wholesale and retail business.

In the past accounting was restricted to the record keeping only. But today it covers a wide range of activities involving business planning and control, decision making, problem solving, performance measurement and evaluation, co-ordinating and directing auditing and tax determination and cost planning and management, etc. But the accounting in wholesale and retail business is restricted to cash book, ledger, and trial balance, trading account, profit and loss account and balance sheet and submitting these to tax authorities and banks at the end of financial year for verification and tax purpose and for continuation of banking facilities. On the basis of research it is find out that very few businessmen use accounting for decision making and to evaluate their financial performance.