As humans our capacity is limited as to how much one can remember and for how long? Proper accounting records do away with the need of remembering. Written records supported by documentary evidence are essential to avoid any mistrust or doubt among owners and managers. As a business owner you want to know the profits earned or lost during the year and the financial position at year-end. This is disclosed by income statement (Trading and Profit and Loss Account) and position statement (Balance Sheet) respectively. Book-keeping records provide necessary data for preparing these statements. Moreover, financial information and data are needed for cost ascertainment, planning, budgeting and forecasting. Records maintained by book-keeping are the source of such information. Lastly, Book-keeping records are regarded by the tax authorities as authentic and reliable for determining tax liability.