Accounting of transactions

Basic concept to be known before proceeding to accounting for transactions. Companies of all kind are required to report to the Government on each and every financial transactions involved in an accounting year in the relevant Assessment year.

By this way, the Government oversees the companies whether they comply with all regulatory requirements and accounting standards as pronounced by the Central Government on consultation with the Institute of Chartered Accountants of India. Here we see what are the transactions that are to be accounted in the books of accounts of a company and how to account for those thereon.