What is accounting? | What is Accounting In English: Hello Friends, Welcome you all again and on an interesting article.
Modern business has grown so much that billions and trillions of transactions have to be kept in it.
It is not possible to run a business venture remembering the details of this transaction and we need some accountant to keep an account of it.
Accounting in English is called accounting, a person who understands every small and big business and helps a businessman.
Before doing this, it becomes important for you to know what accounting is, so in today’s article we will what is accounting in english Have brought you that will help you understand.
What is accounting? | What is Accounting in English:
Accounting is a process that keeps all the records about financial aspects.
If we say in other words, accounting is a process that keeps information about the transactions of rupees in any organization or business.
These two words consist of article and notation in which article means writing and marking means in marks. According to an article by the American Institute of Certified Public Accountants (AICPA),
“Accounting is of a financial nature, called the art of writing, classifying and summarizing effectively in the form of currency and interpreting their results.”
According to this definition, accounting is an art, not a science. This art is used to record, classify, summarize and interpret measurable behaviors and events in a currency of a financial nature.
For example, in any large organization, in business, there is a lot of buying and selling in small and big stores, it is very difficult to remember that is why we do accounting for record of purchases and sales.
In many large organizations, people keep big accountants, but some small businessmen themselves keep an account of it.
Whenever someone officially registers their company, they need an accountant.
What are the benefits of accounting? | Advantage of Accounting:
If you are a shopkeeper, then you can easily understand the benefits of accounting, but if you are a student, then there will be little or no information about its benefits.
Whenever we keep the transaction of our business or any shopkeeper in writing, then there are many advantages which are written in these points….
1.We get to know about the money of the transaction, how much money is given to whom or from whom how much money is to be taken. This leads to an increase in business and no one can do any manipulation.
2.When we keep any record in writing, we do not have to resort to any other to remember the process of our transactions again and again. This keeps the mind light and does business easily.
3.Through accounting we can also find out how much loss and profit has been made in the business. Although every businessman has to go to an accountant every year till March 31, but if all is clear from his side, then there is no problem.
4.Through accounting, we have been able to find out how much capital has been invested in our business so far and whether we have the courage to invest more money or not.
5.Business has another effect on other clients through accounting and if the organization is large, then the monthly salary of the employees is also written according to this, no one can take money wrongly.
What are the types of accounting? | Types of Accounting in English
Accounting also has its scope and every type of accounting works in its own way.
Well, there are three types of accounts, personal account, real account and nominal account, but they all have their own and important functions, so let’s know about them in detail…
Personal account | Personal Account:
Under Personal Account are those accounting which is related to any person, any company or any organization.
If you explain it in other words, the account that is associated with any person, organization, company is called Personal Account.
For example Ram’s account (Mohan’s account), Bank account etc.
All these accounts come under the personal account in which the following things are useful-
- Person’s account (Ram account)
- Bank account
- Capital account
- Supplier or customer account
- Financial and institution account
- Drawing account
All such accounts come in this account, so that we know how much money is to be taken or given by a person.
Real account | Real Account:
Real account includes those accounts which are related to goods or property. If you say in the term of accounting, then the accounts which are related to assets (goods and services) and liabilities (debt or debt) are called real accounts. In this account, some such things are revealed which are listed below-
- Land account
- Building account
- Machinery account
- Furniture account
- Vehicle account
- Cash account
Nominal accounts | Nominal Account:
Under Nominal Account, those accounts are written in which income and expenses are written.
If you explain it in easy language, then it is an account that combines information related to profit or loss.
The types of nominal accounts are as follows:
- Salary account
- Interest account
- Discount account
- Purchase account
- Wages account
- Commission pay or receive account
- Insurance account
- Sales account
Friends, this was all we had on this article today. I hope all of you Acounting in English You must have found information about Detail.
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