NEED AND IMPORTANCE OF

 ACCOUNTING:

We live in a world where people need things from the day they are born to the day that they die.Some of these 'needs' are physical needs, a need for goods of various sorts,food,clothing,shelter, and so on. Some of them are emotional 'wants' a need for education,entertainment, or recreation.

 In satisfying such needs business man perform usefull services to their fellow humans.

In return they expected to earn a reasonable reward for their efforts in the form of profits.

A proper and fair planning of expenditure helps us to ensure proper used of our income. Of course it true that the quantitative of goods our money can not be increased by making aproper planning . But certainly we can ensure most economic use of goods or money at our disposal.  

Most of us do maintain some kind of written record of our income and expenditure. The idea behind maintaining such record is to know that correct position regarding income and expenditure.

The need for keeping a record of income and expenditure in a clear and systematic manner has given rise to the subject of 'book -keeping'.