Accounting is defined as the act and science of recording business transactions in a systematic manner so as to show the true state of affairs of a business during a specific period usually called accounting period.

Financial accounting is concerned with the qualification of economic events or it is aimed at measuring economic activities with a view to provide information for policy making. Account is a discipline which based on accounting principles, concepts and conversion and legal requirements.

1.2. STATEMENT OF OBJECTIVES

This study entitled accounting system in Local Government attempts to determine the problems involved in establishing and applying standards accounting system in Local Government with practical application to Isi-Uzo local government area.

1.3. PURPOSE OF THE STUDY

The purpose of this study are to: -

1. Identify the problem inherent in accounting of the local government

2. enable business organization appreciation the standard requirement for making financial statements’

3. Keep the local government concerned learn how to keep proper accounting statements.

1.4. SIGNIFICANCE OF THE STUDY

There are three categories of people that are going to benefit

from this study.

They are: -

1. The chief accounting officer

2. Financial officers and

3. Auditor general

During this study, it indicates that majority of local governments in Enugu, Onitsha particularly and some other places in Nigeria are not aware of the local government legal requirements for recording, processing and presenting information about the transaction carried on in the business they are managing. Some do not keep proper account of their business therefore, statutory requirements for financial accounting system are carefully set out in this study.

Having a well defined system of recording processing, and presentation o financial transaction that took place in any business will enable the government lower to take appropriate decision for the development and assurance of continuous existence of their business. The finance also requires complete and accurate accounting and other records to assist in controlling the business, safe-quarding the asset of the government, preparing financial statement ad complying with legal requirements.

Manager should also note that a good accounting system help in assembling accounting information and appropriate analysis to enable the financial statement to be prepared so that all transaction which should be incorporated have in fact been recorded and also ensure that errors are being rectified.

Also, accounting students need a well defined systematic approach in order to recollect the chain involve in presentation of accounting information and it will also serve as a future reference to some students for research purposes.