Subsequently book-keeping is a part of accounting being a process of record of financial transactions and events in the books of accounts . Therefore, Book keeping involves:
- Identify financial transaction and events
- Measure them in terms of money
- Record the identified financial transactions and events in the books of account
- Classify recorded transactions and events that is posting them into Ledger.
|In Short the terms ‘Book keeping’ and ‘Accounting’ are often considered as same. But it is not so. Therefore, the two terms are distinct from each other. After that Accounting is a wider concept and includes Book keeping.|
Q- Explain difference between Book keeping and Accounting?
Ans- Likewise bookkeeping is concerned with record of financial data. Therefore Accounting is an art of record, classify and summarize the financial data and interpreting the results there off. Moreover, accounts is a wider concept is includes book-keeping . So,Book keeping and accounting are district from each other in a following manner.
|Scope||Bookkeeping is concerned with identify of financial transactions,so it is measures them in terms of money terms, record and classify them.||Accounting is concerned with summarizing in the recorded transactions, interpreting them and communicating the result.|
|Stage||It is a primary stage.||It is a secondary stage.|
|Objective||The goal of account is to keep up efficient records of money related exchange.||The objective of accounting is to certain net results of operation and financial positions and communicate information to the interested parties.|
|Nature of job||This job is daily in nature.||This jobs logical and dynamic in nature.|
|Performance||Junior staff performs this function.||Senior staff performs this functions.|
|Special skills||Book keeping is mechanical so in nature and does not require special skills.||Accounting need special skills and ability to so analyse and explain.|