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1) Accounting:- Accounting refers to the actual process of preparing and presenting the accounts. In other words, it is the art of putting the academic knowledge of accountancy into practice. It covers the following activities:


1) Identifying the transactions and events.

2) Measuring the identified Transactions and events in a common Measuring unit.

3) Recording the identified and measured transactions and events in journal.

4) Classifying the recorded transactions and events in leader.

5) Summarizing the classified transactions and events in the form of income statement and position statement.

6) Analysing the summarized results.

7) Interpreting the analyzed results.

8) Communicating the interpreted information to the intrested parties.



2) Accountancy:- Accountancy refers to a systematic knowledge of Accounting. It explains ' why to do ' 'how to do' of various aspects of Accounting. It tells us why and how to prepare the books  📚 of Accounts and how to summarize the accounting information and communicate it to the interested parties.


3) Account:- An account is a summary of relevant transactions at one place relating to a particular head. It records not only two amount of transactions but also their effect and direction.

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