Answer:

1. Identification and recording of transactions

The primary object of accounting is to identify the financial transactions and to record these systematically in the books of accounts. As a result, the true nature of each and every transaction is known without much exercise of memory.

With this end in view the transactions are primarily recorded in general and in a special journal and later on permanently various accounts are kept in the ledger.

2. Ascertainment of results

Every business concern is interested to know its operating results at the end of a particular period.

The amount of profit or LOSS for a particular period of a business concern can be ascertained by preparing income statement with the help of ledger account balances of REVENUE nature.

Surplus or deficit of revenue for a particular period of a non-trading concern can also be ascertained by preparing income and expenditure account or statement.

3. Ascertainment of financial affairs

Ascertainment of debts-liabilities, PROPERTY, and assets i.e. TOTAL financial affairs of an organization at a particular date is another important object of Accounting.

Financial affairs of a concern at a particular date can be ascertained by preparing a BALANCE sheet.

The balance sheet is the statement of assets and liabilities of a concern at a particular date