What is Transaction/Transcations?

Any Exchange of value is called "Transaction" such as
a: Purchase of Merchandise,land,building furniture on cash.
b: Purchase of Merchandise,plant,furniture etc on credit.
c: Sold merchandise,old furniture,Building,Equipment On Cash.
d: Sold Merchandise,Old Equipment,land etc..on credit.
e: Rendered services on cash.
f: Rendered services on Credit.
g: Received Cash/Cheque/Note/bill
h: Paid Cash/cheque/Note bill.
All the above Exchange involved the values.These transactions are sub-divided into:
1: Cash Transactions:
Th transaction which involved the immediate exchange of cash(Receipt or payment)
as a,c,e,g,h of the above transactions.
2: Credit Transactions:The Transactions in which the exchange of value is involved but the immediate exchange
 of cash is not made.The receipts and payment are to be made later on as b,d,f of the above transactions.

which parties are interested in accounting ?

Parties interested in accounting:
Accounting is actually the business language used by the accountant to furnish financial
information of a concern to different parties who are interested in such information.These are following:
1:Owner(s):
The own provide funds for the operations of a business and their interest is to know weather their capital is being properly utilized or not.Due to Curiosity of the owners the financial position of the concern before providing loans or credits Facilities.The current and previous financial statements(Income Summary and balance sheet) will guide them  in judging such position.
2:Investores:
Prospective investors,Who desire to invest money in a firm,would like to make an analysis of the financial statements of that firm to know not only the Safety of the proposed investment but also the regular earning.
3:Managers:
Accounting is the "Eyes and ears for management" All accounting  is management accounting".
In this modern age o automatic and electronic process,businessmen can maximize his profit due to efficences of his staff.Management is the art of getting things done through subordinates. Accounting is to measure of performance of the subordinates and provide information to take remedial action for the same.
4:Employees:
labour union and employees keenly interested in the financial position of the concern they serve particularly when payment of labour depends upon the profit earned.They would like to collect the information of the correctness of the income statement and would like to know that bonus being paid to them in correct or not.
5:Government:
Central and provisional governments are interested in the Financial statements because they reflect the earning for a purpose of taxation .More ever,these financial statements are used for the Compilation statistics concerning business which,in turn help in compiling national accounts.
6:Research Scholars:
The income statement and Balance sheet Being a mirror of the financial position of a firm/Business,are of immense value to the research scholar who wants to make a study into financial operation of a firm/Business.

Objectives of Accounting

Objectives of Accounting:
The following are main objectives of accounting:
1:To keep  systematic records:
Accounting is maintained to keep a systematic record of financial transactions.In the absence of accounting there would have been terrific burden on human memory,which in  most cases would have been impossible to bear.
2:To protect Business Properties: Accounting provides protection to business properties(assets) from unjustified and  unwarranted use.This is possible when accounting department provided supplying the following information to the manager Or proprietor:
i:The amount of the proprietor's fund invested in  the business?
ii:How much have to pay to others?
iii:How much has to recover from others?
iv:how much prepaid or un-expired expenses?
v:How much advance or unearned income?
vi:How much amount are in the form of :
   a:Cash in hand
   b:Cash at Bank
   c:Stock of Raw materials
   d:Works-in Progress and finished goods?
   e:Fixed assets or non current assets
above information helps the proprietor in assuring that the funds of the business are not unnecessarily  kept idle or undertilized.
3:To asertain the opertional profit or loss:
Accounting helps in ascertaining the net profit earned or loss suffered on account of carrying the business.keeping a proper record of revenues and expenses of a particular period does this.The profit and loss Account is prepared at te end of a period and if the amount of revenue for the period is more than the expenditure incurred in earning that revenue,there is profit.in Case the expenditure  exceeds the revenue,there is loss.Income summary or profit and loss account will help the management,investors,creditors,etc.in knowing weather the business proved to be remunerative or not.In case it has not proved to remunerative or profitable ,the cause of such will be investigated and necessary remedial steps will be taken.
4:To ascertain the financial positionof the Business:
The Profit and loss account gives the amount of profit or loss made bythe business during the particular period.
However,it is enough.The Businessman must know about his financial position
 i-e where he stands:What he owes and whathe ownes? The Balance sheet or position statement serves this objectives.
The Balance sheet is a statement of assets and liablities of the business on a particular date.
it serves as barometer for ascertaining the financial haelth of business.
5:To Facilitate rational decesion-making:
Comuterized accounting has taken upon itself the tasks of collection,analysis and reporting of information at the required
points of time to the required levels of authority in order to facilitate rational decesion making.
The American accounting Association has also stressed this point while defining the term "Accounting" When it says that
accounting is "the process of identifying,measuring and communicating economic information to permit informed judgments and decesions by users of the information ". Of course,this is by no means an easy task.However,the accounting bodies all overthe world and particularly the international Accounting standards committee,have been trying to grapple with this problem and have archived suceess in laaying down some  basic postulates on the basis of which the accounting statements have to be  prepared.

Nature and Scope of Accounting

Nature of Accounting
In this modern age of money making period ,every entrepreneur needs financial information of the day to enrich himself in order to control the business activities and plan for future,on the one hand  and having a bird's eye view ont he present operating result.
If a task is assigned to a person for the receipt and payment of money he has to maintain some records and there is some credit transactions in the business,which needs business records for the settlement in future therefore it is necessary to have a system of keeping up to date and proper record for ready reference and future planning.
That system is known as"Accounting'
Scope of Accounting:
Accounting is essential in every field of the life,from the small business or a private account of small or large companies to the government,semi government institutions,even schools and collages etc. Nowadays students use to recall their memory at night to check their income and expenditure of the day(what they got from their parents and how much they have spent).

Accounting Systems

Systems of Accounting:
There are Basically Two systems of Accounting:
i:Cash System Of Accounting:
It is a system in which accounting entries are made only when cash is received or paid.No entry is made when
a payment or receipt is merely due.Government system of accounting is mostly on the Cash system.Certain Professional
people and small Business houses record their income on cash basis,but while recording expenses they take into account
the outstanding expenses also. in such a case,the financial statement prepared by them for determination of their income
is termed As"Receipts and Expenditure Account"
ii:Accrual System of Accounting:
it is a system in which accounting entries ar made on the basis of amounts having become due for payment or receipt.
This system recognize the fact that if a transaction  or an event has  occured; It's concequences Cannot be avoided and
therefore should be brought  into record in order to present a meaningful picture of profit earned or loss suffered
during a period and also of the financial Position of the firm concerned at the end of the a period.

Right and Duties of the Partners

Some detail of rights and duties of partners  are as under:
Rights of the Partner(s): 
1: To take active part in  business management.
2: To be consuled or express his vierw before others partners.
3: To inspect and acess any of the businees book.
4: To share profit or losses as per written.
5: To use business property for business use only.
6: To claim profit on his investement(If agrreed by all)
7: To accept or not accept the new partner.
8: To retire
9: To chalenge the expell motion if made.
10: To be damnified bythe firm in respect of payments made or liability incurred by him,during
the ordinary and proper conduct or in an emergency for  the purpose of protecting the firm from l0ss and damage.
Duties of partner(s):
1: To obswerve good faith in all respect.
2: To perform his duties diligently without person interest.
3: To idemnify for wilful neglect.
4: To idemnify for fraud.
5: To share losses.
6: To account for  private profits obtain by him.
7: To act with in authoriy assigned to  him.
8: To hold and use property of the firm exclusively for the business purpose.
9: To be liable for the business debits jointly and serially.
10: Not to assign his rights to an  outsider.

partnership Contract/Agreement/Deed.

Partnership Business comes into existence by an agreement in writting or oral.However,in order to avoid the future dispute and to run the business smoothly by quick decesion it is highly desirable to have a written agrrement  among partners.This written agreement is known as"Partnersgp Agreement"Deed of partnership" or "article of partnership".It is drafted by a commercial lawyer;Income Tax advisiors,Tax advisiors,
and also some other lawyers so that stamps can be used according to the stamps can be used according to the Stamp Act as amended to date.An article of partnership will generally cover the following points:-
1:Name of The firm
2:Name of the partners
3:Nature eof the Business
4:Adres of the Business
5:Duration of the Business
6:Investment of the Capitalk Each Year
7:The Ratio of sharing the income and losses
8:The rate of interest on drawings,on capital and partner's loan(if any)
9: Procedures of Accounts,and name of the parnter(s) who will control?
10:Name of the Business partner/partnere who will control the busines Bank account?
11: Partners Salaries (If any)
12:Disribution of business activities among partners?
13:Matters relatring to the retiremnent,death and admission of partners.
14: Procedure  of settlement of accounts.
15:Arbitration clause to settlement of acconts on dissolution.
16:Any others clause deemed to be necessary for the nature of partnership business.