Tally
Accounting concept:
In Accounting we should know about debits and credits, assets and liabilities, expenses and income, so that we are able to prepare and maintain accounts systematically and correctly.
Accounting is defined as the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are of financial character,and interpreting results thereof.
1. Recording: To get Accounts, the accounting transactions must be recorded in proper form in paper or in electronic.
2. Classifying: To get an organized and systematic information, the transaction are classified into various ledgers, groups etc. They must be classified properly to get meaningful result out of the recorded transaction.
3. Summarizing: The vast records are summarized to get an overall picture of the state of affairs of the business.
Thus, all transaction are expressed in terms of money. All monetary events are recognized as transaction and classified into various accounts heads. The related account heads are the summarized in significant groups so that interpretation becomes possible.
In Accounting we should know about debits and credits, assets and liabilities, expenses and income, so that we are able to prepare and maintain accounts systematically and correctly.
Accounting is defined as the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are of financial character,and interpreting results thereof.
1. Recording: To get Accounts, the accounting transactions must be recorded in proper form in paper or in electronic.
2. Classifying: To get an organized and systematic information, the transaction are classified into various ledgers, groups etc. They must be classified properly to get meaningful result out of the recorded transaction.
3. Summarizing: The vast records are summarized to get an overall picture of the state of affairs of the business.
Thus, all transaction are expressed in terms of money. All monetary events are recognized as transaction and classified into various accounts heads. The related account heads are the summarized in significant groups so that interpretation becomes possible.
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