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Book keeping

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									Book keeping


Book keeping is the art of recording of day-to-day financial transactions
in the books of accounts. These books of accounts comprise of primary
books like journal and ledger and other books like sales book, cash book,
purchases book, bank book etc. The use and applicability of accounts
books may vary from one organization to another depending upon the size
and nature of business. A technically trained person who may be called a
bookkeeper or an accountant performs bookkeeping. He is an individual who
manages the financial and accounting affairs of the organization. When a
transaction takes into effect, it is recorded in a primary book which is
known as journal .It is the book of recording entries with both debit and
credit aspects and recorded with date, amounts and descriptions. From
journal the entry is transferred to concerned accounts and books. When
computers were not common in use, book keeping was done manually which
resulted in many errors due to writing and rewriting of entry at several
places, but after the advent of computers book keeping has become error
free because accounting softwares were developed in which entry recorded
once will automatically be posted to concerned accounts. There are mainly
two methods of book keeping like single entry system and double entry
system. Single entry system is not very common now a days and it is used
in small business concerns. In this system entry is recorded in cashbook
only and only one aspect is recorded. Other books like stock register,
sale book, purchases book, petty cash book may also be maintained. The
most common method is double entry system where each entry is recorded
with debit and credit aspects. Each entry is posted in at least two
places. As the time and technology is changing, so the role of bookkeeper
is also varying. Applicability of various taxes like VAT, Income Tax,
Sales Tax, Excise duty, Import duty has invited tax book keeping, which
is done to record tax transactions. Online book keeping is the service
provided by online companies for recording, posting and analysisdouble
entry of financial transactions. So it can be said that bookkeeping
facilities the organization to present its true picture to its creditors,
debtors, stake holders, shareholders and lenders.

								
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