Accountancy

  Me aning of Accounting Accounting is a process of identifying, measuring, recording and communicating the required information relating to the economic events of an organization to the interested users of such information.      In order to appreciate the exact nature of accounting, we must understand the following relevant aspects of the definition: Identification, Measurement, Recording and communication Economic Events Organization Interested Users of information  IDENTIFICATION  It means determining what transactions to record, i.e., to identity events which are to be recorded, It involves observing activities and selecting those events that are of considered financial character and relate to the organization. MEASUREMENT It means quantification (included estimates) of business transactions into financial terms by using monetary unit, viz. rupees and paise as a measuring unit. If an event cannot be quantified in monetary terms, it is not considered for recording in financial ac