Introduction According to the American Accounting Association, accounting is a process to measure, identify and communicate to show economic information by the user. ( http://tutor2u.net/business/accounts/intro_accounting.htm). Besides that accounting also can be define as the language of business because it is a system to record , analyse and summarize of financial transaction ( http://www.cliffsnotes.com/study_guide/Introduction-to-Accounting.topicArticleId-21081,articleId-21001.html). Accounting is a transaction of selling and buying . After that organise these information presenting it for decision-making. Accounting is important to record all of the business transaction easy for the owner to know whether they are financially successful and to know how much they owed and how much they owned.(Frank Wood & Alan Sangster ,2008,Business Accounting 1 eleventh edition, pg4)

Summary Accounting is a process where the user identify, measure and communicate the economic information to perform decision and judgement. Bookkeeping is required in accounting to record data . There are two equation used in accounting which is accounting equation (assets equal to liabilities plus equity) and profit determination equation (profit equal to revenue minus expenses). Double entry system is used inside the book keeping. T-account is a shape use when doing double entry system. It divided into left-hand side called “debit” and right-hand side called “credit” . Besides that , there are four types of business activities which are retail ,wholesale, manufacturing and service industry. Company , partnership and sole proprietorship are the three modes of business ownership .Inside the accounting cycle there are seven books of prime entry which are cash book, petty cash book, sales journal, purchases journal, sales returns ,