What is accounting?
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Accounting (English word) means lekha-jokha (in Hindi). So, we have understood that accounting is an English word and in Hindi it means lekha-jokha. But whose accounting is this? This accounting is of money.
The most important thing to run any business, institution, whether big or small, is money. Whether it is to arrange for the necessary things to run a business or an institution, like place which may have to be bought or rent may have to be paid from time to time. Working people who have to be paid money in the form of salary. Similarly, there should be arrangement of money for almost every thing.
There is also a saying which is absolutely correct that money is not God but is no less than God. It is obvious that when money is so important then it is very important to know and keep records of where is this money coming from, how much is coming, how much is being spent where, how much should be spent, how much is remaining and how much can be saved, where should it be spent properly, where is unnecessary expenditure being made etc.
Be it any business or organization, all the information related to money transactions should be written in a correct and organized manner and its account should be kept so that later it can be known how much money came, how much went and how much was saved or lost. This process is called accounting.
If said in one line and simple language then keeping a record of money and calculating is called accounting.
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