Objective of Accounting
Objectives-Of-Accounting |
1. Keeping systematic records: (Keeping systematic records) Accounting is done to keep financial transactions organized. This means accounting is used to arrange the records systematically.
2. Detection of Operational Profit or Loss: Accounting helps in determining whether the net profit is being lost or loss is due to the operation of the business... It is accomplished with proper accounting of the income and expenditure of a particular timeline. The profit and loss account is prepared at the end of the timeline and for the time being, if the amount of income is more than the expense, then the earned income is called profit or profit here, as compared to the income. If the expenditure is higher then it is called a loss or las.
4. To know the financial status of the business: The profit and loss account is known by the amount of profit or loss acquired in the business during a specific time period. However, this is not enough. The trader would like to know about his financial position ie, what is the status of the business, this information is available with the balance sheet.
5. Making judicious decisions: (To make judicial decisions) Accounting helps in making the right decisions at the right time.
Types of accounts
In this post, we will learn about Types of Accounts in Tally.
Types of Accounts
1) Personal Accounts
Accounts of all individuals, societies, trusts, banks, and companies are called personal accounts.
Examples: - Trupti A / c, Krishna Sales A / c, Anil Traders A / c, State Bank of India A / c
2) Real Accounts
Real Assets include all Assets and Goods accounts.
Examples: - Cash A / c, Furniture A / c, Building A / c
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