Accounting and Book-keeping
Accounting refers to the actual process of preparing and presenting the accounts. In other words, it is the art of putting the academic knowledge of accountancy into practice.
Book-keeping is a part of accounting and is concerned with record keeping or maintenance of books of accounts. It is often routine and clerical in nature.
Book-keeping provides the basis for accounting and it is complementary to accounting process. Accounting begins where book-keeping ends. Accountancy includes accounting and book-keeping.
Distinction between Book-keeping and Accounting
Sl.No |
Basis of Distinction |
Book-keeping |
Accounting |
1 |
Scope
|
Recording and maintenance of books of accounts. |
It is not only recording and maintenance of books of accounts but also includes analysis, interpreting and communicating the information. |
2 |
Stage |
Primary stage |
Secondary stage |
3 |
Objective |
To maintain systematic records of business transactions |
To ascertain the net result of the business operation |
4 |
Nature |
Often routine and clerical in nature |
Analytical and executive in nature |
5 |
Responsibility |
A book-keeper is responsible for recording business transactions |
An accountant is also responsible for the work of a book-keeper |
6 |
Supervision |
The book-keeper does not supervise and check the work of an Accountant |
An accountant supervises and checks the work of the book-keeper |
7 |
Staff involved |
Work is done by the junior staff of the organisation |
Senior staff performs the accounting work |
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