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|The following information about a business is very vital, namely, the total earnings during the period, the expenditure during the period on salaries, wages, lighting, insurance, rates and taxes etc, the profit or loss, the capital and causes of its increase or decrease, Nature and value of assets possessed by the business, Nature and amount of liabilities, Customers who owe to the business and the amount in each case, Suppliers to whom the business has to make payments and the amount in each case and Other facts for filing sales tax or income tax returns. The above describes in nutshell the purpose of bookkeeping and financial accounting.|