In business numerous transactions take place every day. It is humanly impossible to remember all of them. The recording of business transactions is the main function served by Accounting. With the help of accounting records the businessman is able to ascertain the profit or loss and the financial position of his Business at the end of a given period and communicate such information to all interested parties. Here, we intend to have an overview of Accounting and discuss its nature, scope and importance. We shall also discuss the basic concepts which to be observed at the recording stage and explain the principle of double entry i.e., the rules of debit and credit.