Accounting is the base of any kind of organisation, without accounting any business enterprise cannot achieve its target or the pre defined goals. Accounting provides a path of success to the enterprise. With the help of accounting a business makes it’s stand in the competitive environment. Each type of accounting need some rules and principles to make the accounting effective and useful, and for that purpose accounting system is depend on the basic principles and concepts. Accounting principles, standards and concepts always makes the accountant one step ahead because with the help of accounting principles and concepts the accountant easily make all kind of posting in the books of account with the guidance and help of basic principles and concepts of accounting. Without accounting principles and concepts it is very difficult to maintain the accounting data and make it in that form in which any stakeholder can get that information which is required to him.