The main function of accounting are discussed below:
I . To keep complete and systematic record :
The main function of account is to keep complete and systematic record of business transaction according to specified rules . This function is achieved through book- keeping which is an integral part of accounting .
II . To ascertain the net profit and loss :
To ascertain the net profit earn or loss suffered on account of business transaction during the particular period is the next function of accounting . it help in ascertaining the fact whether the business firm has been running in profit or loss in a certain period . this function is achieved by preparing a statement which is known as income statement or profit and loss account .
III . To ascertain the financial position :
It also ascertain the financial position of the business at a certain period . a statement is prepared in order to represent the total property and liabilities of the firm at a defined time which is described as 'balance sheet' or 'position statement .
I . To keep complete and systematic record :
The main function of account is to keep complete and systematic record of business transaction according to specified rules . This function is achieved through book- keeping which is an integral part of accounting .
II . To ascertain the net profit and loss :
To ascertain the net profit earn or loss suffered on account of business transaction during the particular period is the next function of accounting . it help in ascertaining the fact whether the business firm has been running in profit or loss in a certain period . this function is achieved by preparing a statement which is known as income statement or profit and loss account .
III . To ascertain the financial position :
It also ascertain the financial position of the business at a certain period . a statement is prepared in order to represent the total property and liabilities of the firm at a defined time which is described as 'balance sheet' or 'position statement .
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