1. CHAPTER-1 MEANING AND SCOPE OF ACCOUNTING
1. Need:-
2. Book keeping:-
According to R.N.Carter,” Book keeping is the science and art of correctly recording in books of accounts all those transactions that result in the transfer of money or money's worth”.
3. Accounting:-
According to R.N.Anthony, “ nearly every business enterprise has accounting system. It is a means of collecting, summarizing, analyzing,
and reporting in monitory terms, information about business”.

2. Branches of Accounting-
Financial Accounting
Cost Accounting
Social Responsibility Accounting
Tax Accounting
Management Accounting

3. Objectives/Functions of Accounting-
Systematic records
Ascertainment of profit or loss
Ascertainment of financial position
Communication of results to interested parties
Compliance with legal formalities
Characteristics of Accounting-
Economic events
-External events
-Internal events
Identification of economic events
Recording
Classification
Preparation of financial accounts
Accounting in terms of money
Interpretation of final results

4. ADVANTAGES OF ACCOUNTING-
Helpful in remembering
Helpful in planning and controlling
Helpful in decision making
Helpful in tax assessment
Comparative study
Proof in court
Helpful in sale of business
Helpful in determination of Goodwill
Helpful in realization of debts
Helpful in case of insolvency
Check on errors and frauds
Assessment of progress

5. Parties interested in Accounting Information
Internal Parties:-
1) Owners
2) Management
3) Employee
External Parties:-
1) Investors
2) Creditors
3) Government
4) Researchers
5) Banks

6. Limitations of Accounting-
Records only monetary transactions.
Influence by personal judgment.
Not fully accurate.
Realizable value of business is not shown.
Manipulations in accounts.
Complete control on fraud is impossible.
No quick information.