TALLY - BASIC CONCEPT REGARDING ACCOUNTING

Hello Everyone!!!
Before learning Tally , we must have basic concept regarding Accounting Concept. In this article we will go thoroughly about - What is Accounting? And what is the basic Definition of Accounting ..

INTRODUCTION

In all activities (whether business activities or non-business activities) and in all organizations (whether business organisations like a manufacturing entity or trading entity or non-business organizations like schools, colleges, hospitals, libraries, clubs, temples, political parties) which require money and other economic resources, accounting is required to account for these resources.

In other words, wherever money is involved, accounting is required to account for it.

Accounting is often called the language of business. The basic function of any language is to serve as a means of communication. Accounting also serves this function.

DEFINITION OF ACCOUNTING

American Institute of Certified Public Accountants (AICPA) which defines accounting as “the art of recording, classifying and summarizing 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 thereof”.