Question

Q1. “Book –Keeping is synonymous to Accounting”. Analyse this statement.

Answer 1

Bookkeeping is essentially recording of financial transactions as and when they happen in a systematic manner. Accounting goes a step further to summarise these records and analyse and interpret their effect on the working of the business.
Bookkeeping provides the initial records which serves as the food or input for financial information. Meaningful information is generated by accounting by using the database of records created in bookkeeping. Thus bookkeeping is an essential part of accounting.
Bookkeeping is generally done by a bookkeeper who records the transactions. The job of bookkeeper is of routine type and clerical in nature. The job of an accountant goes beyond that of a bookkeeper. Accountant must possess specialised knowledge in his field. He has to process the records kept in bookkeeping and provide vital information to management. Management will use the information to make important decisions for the organisation.
Accounting, as mentioned before, has a very wide scope and has many branches like Financial Accounting, Cost Accounting and Management Accounting. Bookkeeping has no branches and its scope is limited to recording business transactions.

Answer 2

synonymous simply means that bookkeeping and accounting means the same thing and they both undertake a similar procedure. it is the truth that book keeping is accounting, they both require the knowledge on the double;e entry system whereby any entry made on the debit side of the books op accounting should also be made on the debit side of the accounting book.