Accounting Management system:-In this report, I have explained about accounting .

manual & computerized accounting & also the reasons for which computerized accounting overlaps the manual accounting ,which I have gained under training. Meaning of accounting :-Accounting is often called the language of business .The basic function of any language is to communicate .Accounting communicates the results of the business to the users of accounting information to enable them to make reasoned decisions. To communicate information, accounting follows a systematic process of recording ,classifying and summarizing of numerous business transactions resulting in creation of financial statements.The two most important financial statements areprofit and loss a/c& Balance sheet .Profit &loss during an accounting period andbalance sheet depicts the nature and amount of assets , liabilities & capital of a business and indicates the financial position of the business at a particular date. Definition of accounting:-Accounting is the art of recording ,classifying and summarizing in a significant manner and in terms of money ,transactions and events which are, in part atleast ,of a financial character , and interpreting the results thereof .-American Institute of Certified Public AccountantsCharacteristics of Accounting :1 . I de nt if y ing T r a ns a c t io ns o f f i n an c ia l l C h a r a c t e r : - Only those transactions are recorded in accounting which is of financial character and which can be expressed in terms of money .2 . R e c o r d i n g : Accounting is the art of recording business transactions according to some specifies rules .In a small business where the no. of transactions isquite small, all transactions are first of all recorded in a book called journal .But in a big business where the no. of transactions is quite large ,the journal is further subdivided into various subsidiary books such as (1) cash for recording cash transactions ;(2) Purchase Book for recording credit purchase of goods ;(3)Sales Book for recording credit sales of goods ;(4)PurchaseReturn Book for recording the return of credit purchase;(5) Sales Return Book for recording the return of credit sales .3 . C l a s s i f y i n g : - After recording the transactions in journal the transactions areclassified .Classification is the process of grouping the transactions of one nature at one place , in a separate account .The book in which various accounts are opened Ledger. Separate accounts are opened for purchases ,sales assets .Similarly , all expenses and incomes which are already recorded in journal are again classified under separate heads in the ledger ,such as Wages A/c, Salary A/c,and Commission A/c.4 . S u m m a r i z i n g : - Summarizing is the art of presenting the classified data in a manner which is understandable and useful to management and other users of such data .This involves the balancing of ledger accounts and the preparation of TrialBalance with the help of such balances .Financial Statements are prepared with the help of Trial Balance which includes Trading and Profit & Loss A/c and a Balance Sheet.5 . I n t e r p r e t i n g t h e r e s u l t s : - In Accounting ,the results of the business are presenting in such a manner (i.e.by preparing Trading and Profit & Loss A/c and Balance Sheet ) that the partiesinterested in the business such as owners, managers , banks , creditors, employees can have full information about the profitability and the financial positionof the business. The accounting should explain not only what has happened

but also (a) why it has happened , and (b) what is likely to happen in future .6 . C o m m u n i c a t i n g : - It refers to transmission of summarized and interpreted information to avariety of users has an interest in the enterprise to enable them to make reasoned decisions.Objectives or Functions of Accounting :- Maintenance of systematic record of business transactions:-The main objective of accounting is to maintain complete record of business transactions according to specified rules .Complete record of business transactionshelps to avoid the transactions are first of all recorded in journal for subsidiary books and then posted into ledger.Calculation of profit or loss:-The 2nd main objective of accounting is to ascertain the net profit earned or loss suffered on a/c of business transactions during a particular period .For thispurpose Trading and Profit & Loss a/c of the business is prepared at the end ofeach accounting period. All the items related to purchases, sales ,expenses andrevenues of the business are recorded in Trading and Profit & Loss a/c.If the amount of revenue exceeds the expenditure incurred in earning that revenue, thereis said to be a profit.In the case expenditure exceeds the revenue ,there is said to be loss. In addition , a businessman is able to get the following information by preparing a trading and profit & loss a/c1.How much goods have been purchased during a particular period .2 . H o w m u c h g o o ds h a v e b e e n s o ld d u r in g a par t i c u lar p e r io d. 3 . H o w m u c h g o o ds h a v e r e m a i n e d u n s o l d a n d w h a t i s i t s v a l u e . Depiction of financial position of business:-