Accounting is the branch of knowledge which should learn everybody because it is the language of business. It means to collect, to summarize, to analyze and to report of different business transactions.
In other words, accounting is the science of recording and classifying the business transactions and events, primarily of a financial character, and the art of making significant summaries, analysis and interpretations of those transactions and events and communicating the results to persons who must make decisions or form judgement.
In the accounting subject, we study the meaning of accounting, the history of accounting, branches of accounting, objectives of accounting, uses of accounting, features of accounting and limitation of accounting. Accountant, chartered accountant or account manager are the key people who maintains the accounting records.
Q:- 1. What is Accounting?
It is the science to record the transactions. It is also art to transfer the values from bill, vouchers, invoices, receipts and cash memo to day book. We can explain accounting as the system of scientific recording which is used for calculating the net profit from all the transaction. Whole accounting system is worked on the following accounting equation.
Assets = Capital + Liability
Q:-2. What is the definition of Accounting?
Ans. To record financial transaction is accounting.
Q:-3. What can you say about Accounting?
Ans. I can say only that accounting is the book of accounts, transaction, their record, profit and loss account and balance sheet and their analysis.
Q:- 4. What is the simple definition of Accounting?
Ans. Journal → Ledger → Trial Balance → Manufacturing Accounts → Trading Accounting → Profit and loss accounting → Balance sheet → Cost Sheets → Budgets → Trends → Ratios → Cash flow statements → fund flow statement
Like any other invention, accounting is the invention of India because sufficient evidence exists to lead one to conclude that the art and practice of accounting, as a highly developed system, was in India even during the times of the Vedas. There are lots of direction in the Vedas for getting success in the trade. One of them is to record each transaction like recording any other text. Because Indians had complete knowledge of accounting, so they taught accounting to the other country's trade. We know that we had the trade with Africa. We sold many things to Africa and obtained the Gold. We had taught them to record each transaction for success in the business.
Main article: Branches of Accounting
Today, accounting records are kept with the help of accounting software. There are lots of software companies who sell accounting software in the market. You can choose anyone from them. We are providing you the top list of accounting software in the market. You should also study the list of accounting software mistakes.
In other words, accounting is the science of recording and classifying the business transactions and events, primarily of a financial character, and the art of making significant summaries, analysis and interpretations of those transactions and events and communicating the results to persons who must make decisions or form judgement.
In the accounting subject, we study the meaning of accounting, the history of accounting, branches of accounting, objectives of accounting, uses of accounting, features of accounting and limitation of accounting. Accountant, chartered accountant or account manager are the key people who maintains the accounting records.
Meaning of Accounting
You can ask the meaning of accounting with following ways.Q:- 1. What is Accounting?
It is the science to record the transactions. It is also art to transfer the values from bill, vouchers, invoices, receipts and cash memo to day book. We can explain accounting as the system of scientific recording which is used for calculating the net profit from all the transaction. Whole accounting system is worked on the following accounting equation.
Assets = Capital + Liability
Q:-2. What is the definition of Accounting?
Ans. To record financial transaction is accounting.
Q:-3. What can you say about Accounting?
Ans. I can say only that accounting is the book of accounts, transaction, their record, profit and loss account and balance sheet and their analysis.
Q:- 4. What is the simple definition of Accounting?
Ans. Journal → Ledger → Trial Balance → Manufacturing Accounts → Trading Accounting → Profit and loss accounting → Balance sheet → Cost Sheets → Budgets → Trends → Ratios → Cash flow statements → fund flow statement
History of Accounting
Main article: History of accountingLike any other invention, accounting is the invention of India because sufficient evidence exists to lead one to conclude that the art and practice of accounting, as a highly developed system, was in India even during the times of the Vedas. There are lots of direction in the Vedas for getting success in the trade. One of them is to record each transaction like recording any other text. Because Indians had complete knowledge of accounting, so they taught accounting to the other country's trade. We know that we had the trade with Africa. We sold many things to Africa and obtained the Gold. We had taught them to record each transaction for success in the business.
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| Accounting Record on the Stone in Africa |
There are lots of Cave in India which are old from Africa from where you can find records on the stones.
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| Accounting Record on the Stone in India ( Edakkal Caves - Kerala) |
Branches of Accounting
Main article: Branches of Accounting
Accounting is just like a tree. Financial accounting, cost accounting, corporate accounting and management accounting are its main branches.
Accounting Software
Today, accounting records are kept with the help of accounting software. There are lots of software companies who sell accounting software in the market. You can choose anyone from them. We are providing you the top list of accounting software in the market. You should also study the list of accounting software mistakes.
| Key concepts |
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| Fields of accounting |
| Financial statements |
| Auditing |
| Accounting qualifications |
I heartily gratitude the efforts made by the author. As a beginner of accounting, the subject posted here is very very useful and a layman can learn and have basic and intermediate level of knowledge about accounting. I sincerely thank the author. Srinivas Kota
ReplyDeleteI am a beginner and i know how much its helpful to me.
ReplyDeleteThank You Sir!
Thanks dear Srinivas Kota for reading this article.
ReplyDeleteI really appreciate your lectures. Its really helping me ....
ReplyDeletethank you....sir
ReplyDeletenotes r really helpful
ReplyDeletethnk u sir..helped a lot
ReplyDeletereally sir your notes are very helpfull sir
ReplyDeleteThanks dear Vinay Soni for reading it.
DeleteDear Sir.. i want to thank you for punting lessons of accounts online.
ReplyDeleteit has really to understand the importance of account.
this lines very helpful
ReplyDeleteThe company’s budgeted level of output per period is 10,000units. From the information given below, you are required to;
ReplyDeleteI. Prepare a profit statement using both marginal and absorption costing techniques.
II. Reconcile profits obtained under the two methods.
Year 1
Units produced 10,000 Manufacturing costs: UGx
Units sold 8,000 Variable per unit:
Units in ending inventory 2,000 Direct Materials 2
Selling price per unit 50/= Direct Labour 6
Variable overhead 3
Fixed per period 100,000
Selling and administration costs:
Variable per unit 5
Fixed per period 70,000
Year 2
Beginning inventory units 2,000 Selling price per unit 50/=
Units produced 8,000 Selling & administration costs:
Units Sold 10,000 Variable per units 5/=
Fixed costs remain constant during the two periods under consideration