Contents . Book-keeping – An introduction . Book- keeping Vs. Accounting .
Relationship among Book-keeping, Accounting and Accountancy . Accounting Principles . Accounting Standards (AS) . International Financial Reporting Standards (IFRS) .
Accounting Standards in India Learning Objectives To enable the students to Understand the meaning, definition and features of book-keeping Evaluate the advantages and limitations of book-keeping Understand the accounting concepts and conventions Understand the meaning of and need for Accounting Standards Key terms to know Book-keeping Accountancy Accounting concepts Accounting Standards Points to recall The following points are to be recalled before learning conceptual framework of accounting: Meaning and definition of Accounting Functions of Accounting Users of Accounting Basic Accounting terminologies Accountancy . Book-keeping-An introduction The first tstep in the accounting process is identifying and recording of transactions in the books of accounts. This is necessary for any business as the transactions happening in a business entity must be recorded so that the information is available for further analysis. Book-keeping forms the base for the preparation of financial statements and interpretation which are the important functions of accounting.
In a broad sense, accounting includes book-keeping also. In a small business, the entire accounting work may be performed by a single accountant. In a large firm, there may be a separate person or department for book-keeping work. .
. Meaning of book-keeping Book-keeping is the process of recording financial transactions in the books of accounts. It is the primary stage in the accounting process. It includes recording the transactions and classifying the same under proper heads.
Book-keeping work is of routine nature. Transactions may be recorded in the accounting note books and ledgers or may be recorded in a computer. . .
Definition of book-keeping “Book-keeping is an art of recording business dealings in a set of books”. - J.R.Batliboi. “Book-keeping is the science and art of recording correctly in the books of account all those business transactions of money or money’s worth”. - R.N.Carter .
. . Features of book-keeping Following are the features of book-keeping: (i) It is the process of recording transactions in