BOOKKEEPING :
Book-keeping is the branch of knowledge that reveals how to keep a record of business transactions. It is often routine and clerical in nature. It is important to note that only those transactions related to business which can be expressed in terms of money are recorded. The basic objective of bookkeeping is to have a permanent record of all business transactions. In specific terms, Bookkeeping is defined as, "The science and art of correctly recording in the books of account, all those business transactions that result in the transfer of money or money's worth ".
According to Northcott, bookkeeping is an art of recording in the books of accounts the monetary aspects of commercial or financial transactions.
In general, bookkeeping covers the following activities:
# Identifying the transactions and events.
# Measuring the identified transactions and events in a common measuring monetary
unit.
# Recording the identified and measured transactions and events in proper books of accounts in chronological order.
No comments:
Post a Comment