AccountancySEE 2074
What is book keeping?
1Answer
Book-keeping is the systematic and accurate recording of all financial transactions of a business in a chronological order. It is the first step in the accounting process and involves maintaining various books of accounts such as:
- Journal: Recording transactions in a chronological order.
- Ledger: Posting journal entries to individual accounts.
- Cash Book: Recording all cash receipts and payments.
- Subsidiary Books: Specialized books like Sales Book, Purchase Book, etc.
Book-keeping ensures that all financial data is organized, up-to-date, and easily accessible for further accounting processes like trial balance preparation, financial statement preparation, and decision-making. It helps in detecting errors, preventing fraud, and maintaining a clear financial record of the business. Proper book-keeping is essential for the smooth functioning and growth of any business.
Discussion
Loading…
More Accountancy questions
Write the definition of identity function.SEE 20821Write any two importances of office management.SEE 20821If a and b are two positive numbers, write the relation between their arithmetic mean (AM) and geometric mean (GM).SEE 20821यदि कुनै वस्तुका 40 एकाइ बिक्री गर्दा कुल आय रू.12,000 प्राप्त हुन्छ भने वस्तुको औसत आय पत्ता लगाउनुहोस् । If the total revenue by selling 40 units of a…SEE 20821Write the condition of the continuity of the function f(x) at the point x = a .SEE 20821पूर्ण प्रतिस्पर्धा बजार भनेको के हो ? What is perfect competition market?SEE 20821