BOOK KEEPING (PRINCIPLES OF ACCOUNTS)


DEFINITION: Book keeping is defined as the art of recording business transactions in such as systematic manner so that it can show at any time the exact financial position of a business.  Business transactions should be recorded in the book of accounts in a sequential order or manner.


You record transaction one before recording transaction two and continue. That is to say that transaction is step-by-step endearour. Example you will record transactions made in 1st January, 2012 before recording the transactions made in  2nd   January 2012 and  so on  and so forth. 

ACCOUNTING: This is   defined as a process by which data   relating to the economic activities of an organization are measured, recorded and communicated to interested parties for analysis and interpretation. The technique of recording the relevant data is generally referred to as book keeping.

Accounting therefore is often basically regarded  as a language of communication in an organization . Like every system of  communication, its main purpose is to give  different types of information to interested persons.  Because for this main purpose, accounting   forms  a major  parts of the total information system in any entity, be it business or non-business. 

  
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