Question

state whether the following statements are true or false with reasons:1 Book-keeping and accounting are one and the same thing.​

Answer 1

Explanation:

This statement is False.

Bookkeeping and accounting are not one and the same thing. Book-keeping is the art of recording business transactions in a set of books whereas accounting refers to analysis and interpretation of book-keeping records. Book-keeping itself is a part and parcel of accounting.

I hope it may help you.

Answer 2

ANSWER :

❖ The given statement "Book-keeping and Accounting are one and the same thing" is False.

• ➛ Book-keeping and Accounting are neither one nor the same thing.

• ➛ Accounting is used for entire accounting system and is a broader term than Book-keeping.

• ➛ Book-keeping is a part of Accounting and Accounting includes Book-keeping.

EXPLANATION :

❖ Book-keeping :-

• ➛ Book-keeping may be defined as the art of recording business transaction in terms of money or money's worth in the books of account in a systematic manner so that it may help the business to ascertain its result of operation after a given period. The objective of book-keeping is to record the transaction in the books of account. The scope of book-keeping is limited as it is concerned mainly with recording the business transaction although it includes Journalising, Ledger Posting, Balancing of Accounts and preparation of Trial Balance. Book-keeping is merely a primary record of the business transaction and it is useful for recording and prevention of transaction. No significant managerial decision or managerial use can be made out of it.

❖ Accounting :-

• ➛ Accounting can be defined as a systematic exercise carried on for the purpose of recording summarising and interpreting the result of the users of the information. The objective of accounting is to classify summarise and interpret the business transaction to find out the accuracy of the data. Accounting has wider scope as it comprises preparation of Trading Account, Profit and Loss Account and Balance Sheet. Accounting is a source of financial information it gives final shape of the accounting information system and it is useful for taking decisions by the various user groups interested in the financial statements of an entity.

Therefore, it is cleared that the term "Book-keeping" and the term "Accounting" is not the one and the same thing. Both Book-keeping and Accounting have different meaning, objectives, scopes as well as uses.