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Book-Keeping

The art of recording the business transactions and events which are in financial character in systematic manner in terms of money. It is a routine clerical job. Accounts-assistant, clerk are in charge for book-keeping. Identifying, Business transactions are recorded in monitory terms only, as per money measurement concept, in the books of account. Recording, Classifying are done in book-keeping only. By Journals and subsidiary books, Recording is done. By Ledger, Classifying is done. In book-keeping, transactions and events are recorded based on golden rules in journals and subsidiary books and posted, by classifying them under concern account, to ledgers.
          Definition
                According to R.N.Carder, “Booking keeping is 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.”
          Explanation
               Book-keeping is a science as well as art. Transactions are recorded in dual aspect concept. As per the concept, one account (aspect) is debited and another account (aspect) is credited in a transaction having two accounts. Transactions are analyzed as per scientific rule, based on cause (dual aspects) and effect (debited and credited), of dual aspect. As an art, Accounts are recorded in books of account in systematic manner.
               Book-keeping is an art of recording the business transactions in systematic manner. Recording is the basic process in accounting. Transactions are identified as per double entry system. Two accounts are identified and one account is debited and another is credited in recording.
               Business transactions are recorded in terms of money in book-keeping. Business transaction should be in the nature of transferring them for money or its worth. Business transactions are the result of transfer of money or money’s worth.
           Objectives of Book-keeping
                To record the business transaction in systematic manner.
                To keep records of incomes and expenses to ascertain the profit or losss of business.
                To keep records of assets and liabilities to ascertain the financial position.
                To keep records of debtors and creditors to know the due amount payable and receivable to               
                them.  

                 To keep the records required to provide to tax authorities for paying taxes.

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