Government and Commercial Accounting

Government Accounting- Government accounting is the accounting used by government offices to keep the record of revenue and expenditures of government. It provides necessary information and data to the government for various activities and it helps to control over budget and fix the responsibility. It is maintained on cash basis. It provides information about the services rendered to the public by utilizing public funds and properties. In it, the financial operations are governed by legal provisions. The main purpose of it is to reflect the plans and policies of the government in financial terms.It is prepared for the consumption of government offices and general public.It is maintained on the basis of government budget.

Commercial Accounting- Commercial Accounting is the accounting used by business firm to calculate the amount of profit or loss made during a period. In it, outstanding expenses and accrued expenses are also considered. Government is not responsible in any financial activity and financial activities are not governed by the legal government. It is maintained for the consumption of owner of enterprises. The main purpose of it is to find the profit earned or loss suffered during a financial year