Accounting System: Accounting system has two stages, they are
what do you mean by Book-keeping:
Book-keeping involves the chronological recording of financial transactions in a set of books in a systematic manner.
what do you mean by Accounting:
Accounting system is a means of collecting, summarizing, analyzing and reporting in monetary terms, the information about the business.
Difference between Book-keeping and Accounting:
Object:
The object of Book-keeping is to prepare original books of accounts.It is restricted to journal, subsidiary books and ledger accounts only.
The main object of accounting is to record, analyse, and interpret the business transactions.
Level of work:
Book-keeping is restricted to level of work. Clerical work is mainly involved in it.
Accountancy is concerned with all levels of management.
Principles of accountancy:
In Book-keeping accounting concepts and conventions will be followed by all without any difference.
On the other hand, various firms follow various methods of reporting and interpretation in accounting.
Final Result:
In Book-keeping it is not possible to know the final result of business every year.
Accounting gives the net results of the business every year.
- Book-keeping
- Accounting
what do you mean by Book-keeping:
Book-keeping involves the chronological recording of financial transactions in a set of books in a systematic manner.
what do you mean by Accounting:
Accounting system is a means of collecting, summarizing, analyzing and reporting in monetary terms, the information about the business.
Difference between Book-keeping and Accounting:
Object:
The object of Book-keeping is to prepare original books of accounts.It is restricted to journal, subsidiary books and ledger accounts only.
The main object of accounting is to record, analyse, and interpret the business transactions.
Level of work:
Book-keeping is restricted to level of work. Clerical work is mainly involved in it.
Accountancy is concerned with all levels of management.
Principles of accountancy:
In Book-keeping accounting concepts and conventions will be followed by all without any difference.
On the other hand, various firms follow various methods of reporting and interpretation in accounting.
Final Result:
In Book-keeping it is not possible to know the final result of business every year.
Accounting gives the net results of the business every year.
Thanks for sharing this great information with us. I love to read accounting blog.
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