Meaning :
Book keeping is a part of accounting and is concerned with record keeping or maintenance of books of accounting in a proper set of books.It is the initial stage of accounting . Accounting begins where book keeping ends.
Book keeping is a part of accounting and is concerned with record keeping or maintenance of books of accounting in a proper set of books.It is the initial stage of accounting . Accounting begins where book keeping ends.
Book keeping includes:
- recording of transactions and events in proper books of accounts,i.e.,Journal and various subsidiary books;
- classifying and posting in ledger and totalling and balancing of accounts in ledger.
following are:
1.Complete recording of transaction-
It is concerned with complete and permanent record of all transactions in a systematic and logical manner to show its financial effect on the business.
2.Ascertainment of financial effect on the business-
It is concerned with the combined effect of all the transactions made during the accounting period upon the financial position of the business as a whole.
Characteristics of Book keeping:
following are:
- Book keeping is an art as well as science.
- The work of book keeping is made regular, systematic, correct, clear and in an arranged manner.
- The primary unit of book keeping is journal entry.
- Book keeping is the primary stage of accounting.
- Periods of accounting are fixed during the course of book keeping.
No comments:
Post a Comment