Accounting introduction

Accounting or accountancy is the measurement, processing and communication of financial information about economic entities, such as business and co-operations. Italian mathematician Luca pacioli was the one who had established the modern field of account in 1494.
Accounting is
a. Planning
b. Recording
c. Analyzing
d. Interpreting
the financial transactions.
They are recorded in day to day book of journal. And each of the transactions has double effect i.e. on both debit and credit side. So it is also called double entry book-keeping system.
So while recording also we should follow different rules of double entry bookkeeping system. There different rules of debit credit and it is classified into three

1. Real account
2. Nominal account
3. Personal account

In real account
Debit (Dr.) =what comes in
Credit (Cr.) =what goes out

In nominal account
Debit (Dr.) = all expenses and loses
Credit (Cr.) = all incomes and gains

In personal account
Debit (Dr.) = the receiver
Credit (Cr.) = the giver