Hello, friends, myself Nitin Mahajan and going to introduce you this subject, which is all new subject for you. And name of the subject is Book-keeping and Accountancy. So, we are going to start with Introduction to Book-keeping and Accountancy. Let’s see what is there in this particular subject.

So, first of all, basic accounting terminologies. Now there could be questions on terminologies, as define or explain or write a short note on some particular terms. So, from that point of view, this part is important to us, that is what I am talking about, examination of view. But not only that to understand this new subject, you must understand these particular terms, they are important terms. So far this subject is concerned and so that we must understand this particular subject minutely. So, let’s start with these particular accounting terminologies.

Now, the very first term that is module no.1.1, chapter number 1 and module number 1, here we are going to discuss the term business. So, let’s see accounting terminologies and the very first term is business, so, on this there could be a question. What is business or write a short note on business. So, let’s see what is business? Business includes any activity continuously carried on by a person or persons and when conducting these particular activities that is intention is to earn profit. So to earn a profit when any kind of economic activity is conducted with an intention to earn profit and that activity is called as business. Let’s see further, now as example, production of goods, now goods are produced. Whenever the producer is producing the goods, why he is producing? Because he wants to sell them, so for the purpose of selling it he is making the production. And this production process is a continuous process, so in this factory they are producing and this product will be sold out in the market. And so this is one type of business which is known as manufacturing business. So, manufacturing of goods continuously for the sale to earn profit that is the business.

Then we will see another example, buying and selling of goods. So, now here goods are purchased and sold. They are bought and sold and from that businessman is earning a profit. So, buying and selling of goods continuously to earn profit, again it is a business.

Let’s see next example, providing services. Every time it is not necessary that we are manufacturing something or we are buying or selling only, so sometimes certain businesses, they are providing services. Now, providing services through couriers and then after that this another type of service wherein we are providing the information as per requirement of the customer and if this particular activity is continuously carried on then that is called as business. So, providing different types of services regularly to earn profit again it is a business. Thus, from this we can understand business is an economic activity. Second feature, we can say that it is continuous activity. So, if any activity is conducted once or twice, even if the intention is to earn profit then it cannot be called as business. So business is continuous activity, so it is continuous activity with intention to earn profit, requires different types of resources like men, machinery, material, money. So all these factors are bought together and with this help of these, the business activity is conducted. Then after that next intention is to earn profit, yes, that is very much essential to call it as a business, there must be intention to earn profit. So, these particular activities they are called as business.