Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpretation and communicating financial information. Traditionally, accounting cycle consists of passing opening entries, identification of transactions during the accounting period, journalising them in day books and special journal, posting them in suitable ledger, balancing them, preparing trial balance, making adjustment entries, preparing post adjustment trial balance, passing closing entries and preparing revenue statement and statement of assets and liabilities. Generally, the transactions are recorded in day books and in special journal throughout the accounting year. After recording the transactions, these are posted in accounts suitable ledger during the accounting year. After the end of the accounting year the accounts in the ledger are balanced and trial balance are prepared, adjustment entries are passed, post adjustment trial balance is prepared and accounting statement are prepared in the form of revenue statement and statement of asset and liabilities i.e., balance sheet.