Introduction

We all have been learning through experience that money has a great value, and anything having a value should be accounted. Remember your childhood days when your parent gave you pocket money for your day to day expenses like travelling, fun time, snacks, chocolates, etc.? You would have either spent it or saved it. And if you spent, you would definitely know where you would have, else you will be fired at home. When the same process is done at business level on day to day basis, you call it book keeping. And when you have a systematic book keeping which enables you to know your monthly, quarterly, half-yearly or yearly performance, you call it accountancy.

After completing this module, you will be able to prepare your own accounts and financials. Confused? How are you going to prepare accounts when you don't have business? To understand accounting concepts in depth, it is advisable to associate these accounting events with our real life experience. You would have surely received money from your parents or relatives during festivals and birthdays and you might have used it for several purpose like buying essentials, dining out, travelling, donation, taxes (especially GST) and mainly buying long lasting items like bicycle or laptop or mobile phone. Ever wondered how will you treat these items if you were an accountant? You will soon be able to!