Question

One of the students who has recently joined your class as a student of commerce,consider that Accounting and Book keeping are same,and argue in favour that they are two.How will you convince him that they are two different concepts.Give at least four point in favour of your argument.

Answer 1

bookkeeping and accounting are two different concepts :-

bookkeeping is concerned with identifying financial transaction measures them into terms of money record them in the books of account and classify them.

accounting is concerned with the summarising and record transactions interpretation them and communicating the results.

bookkeeping is a primary stage it is the basis of accounting.

accounting is a secondary stage it being where bookkeeping end.

the objective of bookkeeping is to maintain systematic record of financial records transaction .

objective of accounting is to determine profit and loss and financial position.

book keeping job is routine in nature.

accounting job is analytical and dynamic in nature .

bookkeeping is being a routine work is performed by junior staff .

accounting being a specified function performed by Senior staff