Book keeping and accounting

Meaning of book keeping

In today’s world, our every activity is with some motives of earning profit while in other cases the purpose may be social welfare, providing education, health care etc. whatever may be the purpose of activity is likely to be and organized affairs. If a person organized different types of elements like material, labour, capital etc. to make profit then it is called business. A business is that organization which is performed by person for earning profit. These types of business provide consumers goods. industrial goods, and services.

meaning of book keeping in wikipedia

book keeping

A businessman should manage the business in such a way that it should receive more money than it spends. A business receives money  from different sources like sale of goods, supply of services, sale of assets. rent, commission etc. It has to spend money in different sector like purchase of goods, transportation, salary, rent, wages, electricity etc. Businessmen always try to  the costs and maximize the income so expected profit can be earned and business can be survive in the competitive market. Proper record of these incomes and expenses should he kept in written form because no body can remember all the activities in his mind. So a book of written record is essential for the business to know the  income and expenses of the business . This written record specially related With mono) or finance is called book keeping.

Book keeping is the summation of two words: book and keeping, book means books of account in which business transactions are recorded and keeping means recording the business transaction in a proper manner. So book keeping is defined as the process of recording business transaction in the books of account in a systematic manner. Book keeping is that branch of knowledge which tells us how to record the financial transactions. Transactions are recorded in a systematic manner and scientifically so that information related to any transaction can be obtained immediately whenever needed. The following definitions of different famous authors Will also makes its meaning clearer.

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