Introduction to accounting

The word Accounting means “Language of Business”. The business manager, cashier and salesman use the term accounting to explain business events. You will find that many of the terms used in accounting have absolutely different meanings in non accounting usage. If you need the knowledge of accounting you will have to increase your understanding of the business operations and the basis on which business decisions are made. The professional and business accountants must be expert in the use of this “Language”. You know every language changes gradually to meet the changing needs and requirement of society. In the same manner, changes and improvement in accounting too are continually being made, in the process of business information. No doubt in the age computerization every information can be collected easily and very early, but accounting is the brain of the business, without proper accounting all information and the data provided will be incorrect.

do you know what are the basic rules for book keeping and accountancy

yes these are followings:



1. “Book Keeping is a art of recording business dealings in a set of books (J.R Batliboi)

2. A systematic record of the daily (and hourly) events of a business leading to presentation of a complete financial picture is know as accounting or it is elementary state as Book keeping (M.C Shukla)

3. Book keeping is the science of recording transactions in money or money’s worth in such a manner that at any subsequent date, the nature and effect of each transaction and the combined effect of all the transactions may be clearly understood, so that accounts prepared at any time from the record thus kept, may show the owner of the books his true financial position (L.C Cropper)