Define accounting.
Accounting is a process of identifying the events of financial nature, recording them in Journal, classifying in their respective ledgers, summarising them in Profit and Loss Account and Balance Sheet and communicating the results to the users of such information, viz. owner's, government, creditors, investors,customers, shareholders etc.
According to the American Institute of Certified Accountants, 1941, “Accounting is an art of recording, classifying and summarising in a significant manner and in terms of money transactions and events that are, in part at least, of a financial character and interpreting the results thereof.”
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Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 4 , Question 4: Why is Profit and Loss Adjustment Account prepared? Explain.....
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What are the things comes under p/l adjustment a/c
For this you may refer 3 golden rules of the accounts
How we know that we have to debit the amount or credit the amount....