Page 144 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Reena Kapoor, Lovely Professional University Unit 8: Library Accounting

Unit 8: Library Accounting Notes

CONTENTS
Objectives

Introduction
8.1 Fund Accounting
8.2 Purpose of Library Accounting

8.3 Financial Records of Library
8.4 Financial Audit of Library
8.5 Summary

8.6 Keywords
8.7 Review Questions
8.8 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the concept of Fund Accounting
Discuss the Purpose of Library Accounting
Explain the Financial Records keeping of Library

Understand the concept of Financial Audit of Library

Introduction

Accounting is the process of identifying, recording, measuring and communicating financial
information which allows balanced judgement and sound financial management decisions.
Account systems have been used throughout history as long as there was need to make financial
decisions.
Accounting is a system meant for measuring business activities, processing of information into
reports and making the findings available to decision-makers. The documents, which
communicate these findings about the performance of an organization in monetary terms, are
called financial statements. Usually, accounting is understood as the Language of Business.
However, a business may have a lot of aspects which may not be of financial nature. As such,
a better way to understand accounting could be to call it the Language of Financial Decisions.
The better the understanding of the language, the better is the management of financial aspects
of living. Many aspects of our lives are based on accounting, personal financial planning,
investments, income-tax, loans, etc. We have different roles to perform in life – the role of a
student, of a family head, of a manager, of an investor, etc. The knowledge of accounting is an
added advantage in performing different roles. However, we shall limit our scope of discussion
to a business organization and the various financial aspects of such an organization. When we
focus our thoughts on a business organization, many questions (is our business profitable,

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