Accounting is an art of recording, classifying and summarising in a significant manner and in terms of money, transactions and events which are in part at least, of a financial character and interpreting the results there of. Accounting begins after book-keeping. In this, business transactions are recorded, analysed and interpreted. It interprets profitability and the financial position of the firm.
Accounting is done to achieve the following objectives
1. To maintain the systematic record of business transactions.
2. To calculate net profit/loss of the business.
3. To as certain the financial position of the business.
4. To make available business information to various interest groups.
5. To facilitate planning and quick decision-making.