Book-keeping

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 Book-keeping is an art of recording, Classifying, summarizing in a systematic manner of business transactions.

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Accounting information

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  Persons interested in Accounting Disclosures:-    Accounting is of primary importance to the proprietors and the managers. However, others person's such as creditors, prospective investors, employees, etc. are also interested in the Accounting information. 1) Proprietors:- A business is done with the objective of making profit. It's profitability and financial soundness are, therefore, matters of prime importance to the proprietors who have invested their money 💰 in the business. 2) Managers:- In a sole proprietary business, usually the proprietor is the manager. In case of a partnership business either some or all the partners participate in the management of the business. They therefore, act both as managers as well as owners. In case of joint stock companies, the relationship between ownership and management becomes all the more remote . In most cases the shareholders act merely as rentiers of capital and the management of the company passes in to the hands of profe...
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Advantages of Accounting

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 1) Innumerable monetary transactions occur in a business organisation. Accounting keeps a systematic record of such transactions.        2) When a business maintains a complete record of its transactions, it has complete information about expenses, losses, incomes and gains, Hence, It can easily ascertain the net profit or net loss for any period.  3) Accounting records will help a concern to know not only it's net profit or net loss but also the exact reasons that has contributed to the profit or loss. 4) when Accounting records are available over a period of time. It can compare the results of its business from year to year and study the progress of business over a period of time. 5) When a business house 🏡 keeps Accounting   records, it has a complete record of what it owns, what it owes and what it has invested. So it can know the true and correct financial position of its business at anytime. 6) Accounting records enable a business concern ...
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Types of Accounting

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 An account is a summary of the record of all transactions relating to person, asset, expense or gain. It has two sides- the left hand called the Debit side and right hand side called credit side. Accounts are broadly classified into two head: 1)  personal Accounts 2) impersonal Accounts a) Real Accounts b) Nominal Accounts Personal Accounts:-  Personal accounts are accounts of persons with whom a concern carries on business personal accounts . a) Accounts of natural person's such as Rahul, Naveen etc. b) Accounts of artificial persons, such as Andhra Bank, Wipro Technologies . c) Representative personal accounts such as outstanding salaries prepaid insurance accounts etc. Basic Rule:- Debit - The Receiver Credit- The Giver Real Accounts : Accounts relating to properties or assets of a trader are known as real accounts. It includes tangible assets such as Buildings, furniture,cash etc and also intangible assets such as Goodwill,trade marks etc. Basic Rule:- Debit- what co...
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