Meaning: Bookkeeping is that the process of maintaining financial transactions and it’s a neighborhood of accounting.
Definition: Bookkeeping is the science and art of recording correctly within the books of account all those business transactions that end in the transfer of cash or money worth.
BRANCHES AND SYSTEM OF ACCOUNTING – DEFINITION
Branches or Sub-disciplines within the Accounting Discipline.
Financial accounting: It helps keep a correct record of monetary transactions for the preparation and presentation of monetary reports to live the financial success and soundness. it’s concerned with providing of monetary information to all or any users.
Cost accounting: It helps in analyzing the expenses to seek out the value of varied products manufactured or services provided by the firm and in fixing their prices. It also helps in controlling the prices and providing necessary costing information to the management for decision-making.
Management accounting: It deals with providing the required accounting information to people within the organization to assist them in decision-making, planning, and controlling business operations. Management accounting draws the knowledge mainly from financial accounting and price accounting which helps the management in various areas.
The systems of accounting.
Double Entry System: it’s a system of accounting where each transaction is recorded with 2 aspects, namely debit and credit of a financial transaction. Every debit of a transaction will have a corresponding credit. this technique is predicated on the Principle of Dual Aspect.
Single Entry System: this technique is explained as an incomplete double-entry bookkeeping system of recording transactions where the double-entry bookkeeping system of debit and credit isn’t followed.
DISTINCTION BETWEEN BOOKKEEPING, ACCOUNTING, AND ACCOUNTANCY – DEFINITION
|Scope||It is a narrow term that explains details of day-to-day transactions.||It is comparatively narrower because it relates only to apply a part of accountancy.||It is a broad term that explains the entire system of accounting.|
|Process||It is the first stage of the method.||It is the second stage of the method and starts where bookkeeping ends.||It is an entire process that has both bookkeeping and accounting.|
|Relationship||It depends on the correct recording of transactions.||It depends on bookkeeping.||It depends on both bookkeeping and accounting.|
|Objective||It is a neighborhood of accounting that’s concerned with record-keeping and maintenance of books.||It provides information on the financial position from the info provided in bookkeeping.||It includes the choice-making work on the idea of data provided by bookkeeping and accounting.|