In simple words, Accounting is keeping records of all the business transactions that are of economic nature ( i.e. transactions which may be measured in terms of money), of a business or an entity. Then there are definite ways to record the transactions which we call as debit or credit, income or expenditure, assets or liabilities as so on.
A correct definition of – Accounting is, the method of identifying events that are of a financial nature , recording them in Journal , classifying them in their respective ledger accounts, summarizing them in Profit & loss and in record and interpreting and communicating the results to the interested users like- Owners, government , creditors, investors etc.
Harsha Lal – ACW Accounts at Edumarz