MEANING AND DEFINITION OF BOOK- KEEPING

 

Meaning

Book- keeping includes recording of journal, posting in ledgers and balancing of accounts. All the records before the preparation of trail balance is the whole subject matter of book- keeping.

Thus, book- keeping many be defined as the science and art of recording transactions in money or money’s worth so accurately and systematically, in a certain set of books, regularly that the true state of businessman’s affairs can be correctly ascertained. Here it is important to note that only those transactions related to business are recorded which can be expressed in terms of money.

Definition

“Book- keeping is the art of recording business transactions in a systematic manner”. A.H.Rosenkamph.

“Book- keeping is the science and art of correctly recording in books of account all those business transactions that result in the transfer of money or money’s worth”. R.N.Carter

 

Objectives of Book- keeping

i) Book- keeping provides a permanent record of each transactions.

ii) Soundness of a firm can be assessed from the records of assets and abilities on a particular date.

iii) Entries related to incomes and expenditures of a concern facilitate to know the profit and loss for a given period.

iv) It enables to prepare a list of customers and suppliers to ascertain the amount to be received or paid.

v) It is a method gives opportunities to review the business policies in the light of the past records.

vi) Amendment of business laws, provision of licenses, assessment of taxes etc., are based on records.

 

 

 

 

References

http://www.b-u.ac.in/sde_book/bbm_account.pdf

http://bookkeeping.askdefine.com/

http://www.du.ac.in/fileadmin/DU/Academics/course_material/EP_11.pdf

http://accountantsadda.com/user/Inner.aspx?artid=838#.UvYl5M7YF04

 

 

 

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