Features

• Art as well as science

  • The art of correctly recording day-to-day transactions.
  • Science of maintaining business records in a regular and proper manner to ascertain business results easily and correctly.
• Financial Transaction

  • Accounting only records transactions and events of financial nature.
  • If it cannot be measured in terms of money, it will not be recorded.
• Recording

  • Involves recording of business transactions in a systematic manner.
  • Done in various subsidiary books.
• Classifying


  The process of grouping entries or transactions of one nature at one place.
• Summarizing

  The process of presenting classified data in a manner useful to the users of accounts.
• Analysis and Interpretation

  The accounting statements are analyzed and interpreted to help the management judge the performance and financial position of the business.