What is Accounting?

The word accounting is the art of entering, summarizing, describing, and examining financial dealings. An accounting system can be an easy, useful check record, or, since with Microsoft Office account and it can be a complete record of all the actions of a business concern, offering particulars of every aspect of the business concern, reserving the analytic thinking of business styles and providing insight into future aspects.

What is Accounting

The accounting is a systematic registering, describing and analytic thinking of financial (fiscal) transactions of a business concern. An individual in charge of method of accounting is called an accountant person and this person is typically wanted to follow a set of regulations and rules; such as the commonly undisputed accounting rules. An accounting allows a company to examine the financial operation of the business concern and deal statistics such as net income.


Definition of Accounting

It's not easy to allow a brief definition of accounting because the word has a broad application within applications and business concern.

"A process of describing, evaluating and transmitting economic data to allow informed opinions and conclusions by exploiters of the data.



    

Accountants

The people (accountants) use the work done by book keepers to make and examine financial accounts. Though accounting follows the equal rules and principles as book keeping, even though an accountant can figure an organization that will capture all of the points necessary to meet the needs of the business concern - the projection, analysis, and tax reporting, managerial, financial reporting. An effective accountant will make an organization of financial reporting that gives a perfect picture of a business concern.

Through using Office Accounting (account statement), we can work with our accountant to arrange your method of accounting to satisfy the wants of our business concern. We can then insert generate reports and transactions - entirely the book keeping tasks and some accounting system undertakings, and such as generating accounts that we might previously have classified to our accountants.


Accounting Example

1. A firm started the business with the capital of Rs. 50000. Later the business should re-pay the amount of Rs. 10000. Calculate the amount of assets in the business by using the accounting equation.

Solution:
Capital = 50000
Liabilities = 10000
Assets =?

Capital + Liabilities = Assets

50000 + 10000 = 60000

The total amount of assets in the business is Rs. 60000


2. In the books of Krishna and company. Prepare the journal entries.
May-3    The business paid the wages of Rs. 5000 to the workers.
Aug- 11    The commission was received by the cheque Rs. 10000.

Accounting Example



Next Chapters

Single Entry Accounting
Debit
Depreciation Dividends in Accounting
Double Entry Accounting
Cash Book
Discount Assets
Ledger in Accounting
Final Accounts
Liability Debenture
Journal Entry
National Income
Trial Balance Payroll Accounting
Drawings in Accounting
Petty Cash Book
International Trade Admission of a Partner
Annuities
Book Keeping
Bill of Exchange  





Latest Articles


Average Acceleration Calculator

Average acceleration is the object's change in speed for a specific given time period. ...


Free Fall Calculator

When an object falls into the ground due to planet's own gravitational force is known a...


Permutation

In Mathematics, the permutation can be explained as the arrangement of objects in a particular order. It is an ordered...

Perimeter of Rectangle

A rectangle can be explained as a 4-sided quadrilateral which contains equal opposite sides. In a rectangle

Perimeter of Triangle

A three sided polygon which has three vertices and three angles is called a triangle. Equilateral triangle...