Tuesday, January 28, 2020

Book-keeping and an Accounting

The terms book-keeping and accounting are often use synonymously. It is recording phase.

    It is the recording phase of accounting system.

    It is the basis of accounting



   Persons responsible for bookkeeping are called book-keepers.

    It does not require any special skills or knowledge.

    Persona judgement of the book-keeper is not required.

    Financial statements are not preparing form bookkeeping records.

    It does not give the complete picture of the financial condition of the business unit.

    It does not help in complying legal formalities.

    It does not provide any information for taking managerial decisions.

    It has no branch.

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