Basics in Accounting

Definition

            Accounting is " recording classifying and summarising in a significant manner in terms of money transaction and event which are in part atleast of financial character and interpreting the results thereof"

          

 Branches of Accounting

1. Financial Accounting
2. Cost Accounting
3. Management Accounting

1. Financial Accounting.                                                     Financial Accounting is the original form of accounting. The purpose of financial accounting is to record transactions in the books of accounts and to prepare the financial statements and interpreting the results
2. Cost Accounting.                                                        Cost Accounting as classifying recording and appropriate allocation of expenditure for determination of costs of products or services and for the presentation of suitably arranged data purposes of control and guidance of management
3. Management Accounting.                                      Management Accounting is the adaption and analysis of Accounting information and it's diagnosis and explanation in such a way as to assist management