**Ms Ansul and Company Commenced Business on 1st January 2016**

**Introduction**
Commencing business refers to the start of a new business venture. In the case of Ms Ansul and Company, their business operations began on 1st January 2016. This marks the beginning of a new journey for the company, where they will engage in various activities to generate revenue and achieve their business objectives.

**Importance of Commencement Date**
The commencement date is essential as it provides a reference point for various accounting and financial reporting purposes. It helps in determining the financial year-end, calculating the duration of accounting periods, and preparing financial statements in a systematic and consistent manner.

**Accounting Year**
Upon commencing business, Ms Ansul and Company need to determine their accounting year. The accounting year is the 12-month period used for financial reporting purposes. It can be a calendar year (January to December) or a fiscal year (any 12-month period chosen by the company). In this case, since the business commenced on 1st January 2016, the accounting year could be either a calendar year (January to December) or a fiscal year starting from 1st January.

**Accounting Policies and Procedures**
After commencing business, Ms Ansul and Company need to establish accounting policies and procedures. These policies and procedures outline how the company will record, classify, and report its financial transactions. They ensure consistency, accuracy, and compliance with accounting standards and regulations.

**Recording Transactions**
Once the accounting policies and procedures are in place, Ms Ansul and Company can start recording their business transactions. This includes activities such as sales, purchases, expenses, investments, and borrowing. Every transaction needs to be accurately documented, supported by appropriate evidence, and recorded in the company's accounting records.

**Bookkeeping**
Bookkeeping involves the systematic recording, organizing, and storing of financial transactions. It provides a detailed and chronological record of all business activities. Ms Ansul and Company need to maintain proper books of accounts, including journals, ledgers, and subsidiary books, to ensure the accuracy and integrity of their financial records.

**Financial Statements**
At the end of the accounting year, Ms Ansul and Company will prepare financial statements. These statements include the income statement, balance sheet, and cash flow statement. The income statement shows the company's revenue, expenses, and net profit or loss. The balance sheet provides a snapshot of the company's assets, liabilities, and shareholders' equity. The cash flow statement reflects the company's inflows and outflows of cash during the year.

**Auditing and Reporting**
After the financial statements are prepared, Ms Ansul and Company may choose to have them audited by an independent auditor. An audit ensures the accuracy and reliability of the financial information presented in the statements. Once audited, the financial statements are shared with various stakeholders, such as investors, creditors, and regulatory authorities.

**Conclusion**
Commencing business on 1st January 2016 marks the beginning of Ms Ansul and Company's operations. From this point onwards, they need to establish accounting policies and procedures, record their transactions, maintain proper books of accounts, prepare financial statements, and undergo auditing and reporting processes. These activities form the foundation of their financial reporting framework and help in evaluating the company's performance and financial position.