Mechanism of Accounting

Mechanism of accounting means includes all the steps which are needed for making final accounts. First of you need to learn double entry system because without  learning this, you can not pass the journal entry. Then you need to know to make ledger accounts. This is important because it will give you the different account balance. Then you have to make trial balance. This trial balance will give you the knowledge of mathematical mistakes. After correcting mathematical problems, you need to pass the adjusting entries. In the end of this mechanism of accounting, you need to know trading and profit and loss account and balance sheet.

You have seen any machine. If you open the machine, you will see the different parts. Every part contributes for operating the machine. So, this is the mechanism of machine. Suppose, accounting is also a machine. You will provide  input and accounting will give you the output. For this, all steps will be taken by you or your accountant.

Without this, our output in the form of financial statement will not be as per standards.

Vinod Kumar


Prof. Vinod Kumar is an Indian Educator, Motivational Speaker, Naturopathic Practitioner and Entrepreneur . He is the founder of Svtuition... read more »


  1. this is so simple way to understand the mechanism of accounting