Introduction to accounting.

1. INTRODUCTION TO
ACCOUNTING
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Dr.PadmaShakar

2. “Accounting is as
old as money itself”
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3. BARTER SYSTEM
 People exchange goods and services for exchange of
goods and services.
 During barter system record keeping was not
necessary
 It was used long before when money was not used.
 Barter system means to trade by exchange of
commodities rather than by the use of money.
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4. Wikipedia defines barter as a system of exchange
by which goods or services are directly exchanged
for other goods or services without using a medium
of exchange such as money.
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5. Industrial revolution of the 19th Century increased
commercial activities, mass production and credit
there for recording of transaction became important.
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6. ROLE OF THE ACCOUNTANT
From a mere financial record keeping an
accountant’s role has now evolved into providing
information to decision making team.
Accountants work these days include:
 Forensic accounting (solving crimes like computer
hacking, and theft of large amounts of money in the
internet),
 E-commerce –designing web-based payments
system,
 Financial planning, and
 Environmental accounts
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Dr.PadmaShakar

7. EVOLUTION OF THE ROLE OF AN ACCOUNTANT
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8. IMPORTANCE OF ACCOUNTING
 To offer investment details;
 To give the results of business transaction;
 To give details of earning and expenses;
 To give details of goods purchased or sold;
 To give details of money receivables from customers;
 To give details of money payable to suppliers; and
 Nature and value of assets owned an liabilities in the
organization.
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9. REFERENCES:
 https://www.mint.com/barter-system-history-the-past-and-present/
 http://www.capgemini-consulting.com/blog/results-
count/2013/09/from-business-partner-to-business-catalyst-not-just-
spotting-problems-but
 NCERT text book class for XI
 TN State board text book class for XI
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…………Thank you