ACCOUNTING AND BOOKKEEPING
Accounting is the fundamental function of every organization which includes financial transaction.Proper accounting system helps organization to ascertain profit or loss and also a financial position.An accountant is a person who prepare reports from the information contained in the financial transactions.Accounting is known as the measurement, processing and communication of financial information about economic entities which measures the results of an organization’s economic activities. accounting and bookkeeping in Jaipur
ACCOUNTING IS OF THREE TYPES. Management accountingManagement Accounting helps the managers to get informed about the provisions of accounting information which helps them in taking decisions within the organisation.
Cost accountingCost Accounting is an accounting system which records all the cost incurred in a business to improve its management in an organisation.
Financial accounting
Financial accounting is concerned with analysis and reporting of financial transactions of any business.It also helps in preparing financial statements of every organisation.Financial accounting is prepared according to Indian Accounting Standard(IAS), International Financial Reporting Standards (IFRS) in IAS.
According to the Indian Accounting Standard, presentation of the financial statement includesStatement of income statement and financial statementStatement of cash followStatement of changes in equityRelevant disclosure and notesfinancial statement of stakeholders.
MEANING OF BOOKEEPING
Bookkeeping plays a vital role in process of accounting and records the of every organization.Bookkeeping include transactions such as purchases, sales, receipts and payments by an individual person or an organization.
The book keeping system help to prepare the financial statement of the firms which start with double entry of the financial transaction as double entry is known to be the basic of the accounting.Book keeping is the known as the basic activity of the accounting system.Bookkeeping is performed by a bookkeeper who records the day-to-day financial transactions of an organization and is responsible for writing the daybooks which include transaction such as purchases, sales, receipts, and payments
SOME STANDARD METHODS OF BOOKKEEPING ARE:
Single-entry bookkeeping systemSingle-entry accounting is a method in which financial transactions are recorded in form of single entry in a log.Transaction to be recorded in Single-entry System:Taxable incomesTax-deductible expensesCash
Double-entry bookkeeping system
Double-entry bookkeeping is an accounting system in which every entry is made with a corresponding and opposite entry in a books of account. The double-entry system has two equal sides known as debit and credit where the left-hand side is debit and right-hand side is credit.
Double entry bookkeeping system is popular all over the world.Transaction to be recorded in Double Entry Bookkeeping system
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