Question

What are the objectives of book keeping?

Answer 1

Objects of book keeping may be stated as follows:
a. To have a permanent recode of each transaction of the business.
b. To show the financial effect on the entity of ech transaction recoded.
c. To ascertain the combined effect of all the transaction (during on accounting period) on the financial position on a particular date.
d. To describe the fectors responsible for earing profit or suffering loss in a given period.
e. The amount recoverable by the business from other(sundry debtors) and payable to other (Sundry creditors)
f. Protection of assest
g. Determine of tax liability of the business