Accounting is defined as the process of recording, classifying, measuring, summarizing, and communicating the financial information of a business to internal and external users. It involves identifying transactions, measuring them in monetary terms, recording them, and reporting them. The main purposes of accounting are to maintain accurate financial records, calculate profit and loss, report the financial position of the business, and provide information to decision makers.

1. INTRODUCTIONTO ACCOUNTING

2.  It is defined as the art of recording,
classifying, measuring, summarizing,
recording and communicating the required
information relating to the economic events
of an organization to the interested users of
such information.

3.  Events which results in transactions which
can be measured in monetary terms.
 TYPES:
 External events
 Internal events.

4.  IDENTIFICATION:Which transactions to
record?
 MEASUREMENT: Represent in terms of
money.
 RECORDING: Entering in the books of
Accounts.
 COMMUNICATING: to the internal and
external users

5.  ORGANISATION:The Business enterprise
 INTERESTED USERS:
 Internal Users: Board of Directors, Managers,
Employees, etc.
 External Users: Banks, Investors,
Government, Researchers, students, etc.

6.  Helps in decision making
 Serves to interested users
 Helps the organization reach its goals
 Helps in analysis, interpretations and
estimation.
 Provides information on activities affecting
the society.

7. Accounting
Financial
Accounting
Cost
Accounting
Management
Accounting

9.  Maintenance of records of Business
Transactions
 Calculation of Profit and loss
 Depiction of Financial Position
 Providing Accounting information to its Users

10.  ENTITY: Identifiable Business Enterprise
 TRANSACTION: An event involving some
value between two or more entities
 ASSETS: Resources that belong to the
enterprise.
 LIABILITIES: Obligations
 CAPITAL: Amount Invested by the owner
 SALES:Total Revenue.

11.  REVENUES: Amount earned by the Firm
 EXPENSES: Amount spent by the Firm in the
process of earning a Revenue
 EXPENDITURE: Spending money to get some
benefits
 PROFIT: Revenue minus Expenses
 GAIN: Profit from few events
 LOSS: Expenses over Revenue.

12.  DISCOUNT: Deduction in the price of goods
sold
 VOUCHER: Documentary Evidence
 GOODS:Tangible Products used in Business
 DRAWINGS:Withdrawal of money/goods for
personal use
 PURCHASE: Goods procured for further
production/sale.

13.  STOCK: Goods lying unsold
 DEBTORS:Who owe money to the Enterprise
 CREDITORS: Money Lenders.