Agriculture has being the largest source of employment to our public in rural area. In spite of providing employment to large number of citizens, yet farming is not regarded as full-fledged business in India Farmer takes risks like an entrepreneur, makes investment in the hope that the value of his product or produce will be enough to cover his costs and generate sufficient profit. Farmers do enjoy the profit arising from his endeavour and also bears pain of loss from his endeavour. Major chunk of exports of our country comes from agriculture or allied industries, so for a country like India, where Agriculture sector enjoys tax exemptions to let such a big sector go without proper accounting is highly unacceptable. Farming in India, which was mainly intended for meeting household requirements before independence, is now becoming more commercialised with emergence of corporate players. Now farming has not only traditional activities as its part, but it includes activities like horticulture, nurseries, poultry farming sericulture, dairy farming, orchards, etc. The term “Agriculture Accounting” popularly known as farm accounting encompasses use of accounting tools and techniques in the field of agriculture. The paper is attempted to summarize the process, and impart awareness about this facet of accounting.

KEYWORDS: Agriculture Accounting, Farm Book Keeping, Biological Assets, Biological Transformation.