ACCOUNTING• “Accounting is the art of

recording, classifying and summarizing in significant manner and in terms of money, transactions and events which are, in parts at least of a financial character and interpreting the result thereof”.

Concept of Accounting• Separate entity concept.• Going concern concept.• Money measurement concept.• Cost concept.• Dual concept.

Separate entity concept:-

• In separate entity concept we consider the businessman and business are two different identities. In accounting we record only those transaction which is from the business point of view not from the businessman.

• Ex:-When businessman withdraw 10,000 the business will charge the businessman.

Going concern concept

• In this concept we assume that the business will continue for a long time.

Money measurement concept

• Accounting record only those transaction which are in only monetary in nature event or transaction which cannot be expressed in money do not find place in the book of account.

• Ex:-If businessman has got a trusted employed, it is definitely an asset to the business but their monetary measurement is not possible , They are not show in the books of business.

Dual concept• In this concept every business

transaction has dual effect its mean that every debit has its own credit and every credit has its own debit.

Cost concept• In this concept we record the price

paid to acquire the assets of the business .Ex:-If the businessman purchase a plot for 50,000. it will show 50,000 in his book whether its market value is 60,000 and one year later the market value of this asset comes down 40000.