Accountancy, or accounting, is the production of information about an enterprise and the transmission of that information from those who

have it to those who need it. The communication is generally in the form of financial statements that shows the earnings of the business concern. The principles of accountancy are applied to business entities in three divisions of practical art, named accounting, bookkeeping, and auditing. The systematic recording, reporting, and analysis of financial transactions of a business. The person in charge of accounting is known as an accountant, and this individual is typically required to follow a set of rules and regulations, such as the Generally Accepted Accounting Principles. Accounting is thousands of years old; the earliest accounting records, which date back more than 7,000 years, were found in Mesopotamia. Today, accounting is called "the language of business" because it is the vehicle for reporting financial information about a business entity to many different groups of people. So the main purpose of the accounting is to ascertain profit or loss during a specified period, to show financial position of the business on a particular date and to have control over the firms property. Such accounting records are required to be maintained to measure the income of the business and communicate the information so that the information may be used by Managers, owners and other parties. Accounting is a discipline which records, classifies, summarises and interprets financial information about the activities of a concern so that the intelligent decisions can be made about the concern. BRANCHES OF ACCOUNTING:-

There are three branches of accounting, namely----a) Financial Accounting. b) Management Accounting. c) Cost Accounting.

d) A. Financial Accounting :-