2. Accounting is a very old concept – as old as money. A description of proper keeping of accounts is found mentioned ‘Arthashashtra’ written by Kautilya.

3.  Accounting ◦ Definition ◦ Functions ◦ Advantages  Book Keeping  Difference between accounting and book keeping.  Role of accountant

4.  “Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events of financial character.” ◦ Art – it needs special knowledge, experience and judgment to record, analyze and interpret financial events. ◦ Involves systematically writing (recording), grouping transactions (classifying) and preparing MIS and reports (summarizing) ◦ All transactions are recorded in terms of money ◦ Records only those transactions and events which are financial in nature

5.  Keep a systematic record of financial transactions  Controlling and protecting government properties  Ascertaining position of Receipt and Payments  Facilitates financial reporting  Helps in Financial decision making

6.  Business Records  Financial Statements  Comparison of Results  Decision Making  Evidence in Legal Matters  Provides Information to all Interested Parties  Taxation Matters

7. Book-keeping is mainly concerned with recording of financial data in an orderly way. It covers procedural aspect of the accounting work and includes record keeping function. Book Keeping is clerical in nature and is mechanical and repetitive

8.  Book keeping – primary role  Budgeting  Reporting  Audits – AG, Department  Taxation  Custodian of cash and financial records