MEANING OF ACCOUNTING

Accounting begins after the end of book keeping.Accounting is the process of analysis and interpretation of book keeping records.It includes not only the maintenance of accounting records but also the preparation of financial and economic information which involves the measurement of transaction and other events relating to the entity.It is aimed for the recording of financial transaction for future reference .so accounting is primarily concerned with designing the system for recording,classifying and summarizing, the recorded data and interpreting them for internal, external and end users.

ACCORDING TO R.LEWIS IAN GILLESPIE "ACCOUNTING MAY BE SEEN AS CONSISTING OF RECORDING, CLASSIFICATION, PRESENTATION, AND INTERPRETATION OF FINANCIAL INFORMATION."

IN THE SAME WAY BY MR.ANTHONY R.N. "ACCOUNTING IS A MEAN OF COLLECTING SUMMARIZING, ANALYZING, AND REPORTING IN MONETARY TERMS, INFORMATION ABOUT THE BUSINESS."

IT ALSO COVERS SOME THE ACTIVITIES THAT GIVEN BELOW:

> identifying the recorded transactions and events.

>measuring the identified and measured transactions in journal .

>classifying the recorded transactions in ledger.

>summarizing the classified transaction in the form of income statement.

>analyzing the summarized results.

>interpreting the analyzed results.

> communicating the interpreted in formation to the interested parties.