In the same manner, changes and improvement in accounting too, are continually being made, in the process of business information.
"A systematic record of the daily (and hourly) events of a business leading to the presentation of a complete financial picture is known as accounting, in its elementary stage, as BOOK KEEPING." ----- M.C. Shukla.
"Book-Keeping is the science of recording transactions in money or money's worth in such a manner that at any subsequent date, the nature and effect of each transaction, and the combined effect of all the transactions may be clearly understood, so that the accounts prepared at any time from the records thus kept, may show the owner of the books his true financial position"----- L.C. Cropper.
Those who invest their capital and devote their efforts in business expect that they will receive a return in the form of profit. Moreover, they employ managers in the business it is the duty of the managers to maximize profit and to minimize losses.
In order to maximize profits and to minimize losses there must be proper record of all events and transactions of the business so that at the end of a period, the owner of the business can have knowledge about:-
Each and every transaction affects the basic of accounting equation. ...