Question

what is difference between double entry system of bookkeeping and accounting? class11 please answer this according to book of accountancy​

Answer 1

The major difference between book keeping and accounting is that book keeping is the primary stage and basis for accounting whereas accounting is the secondary stage and it begins where book keeping ends.

Book keeping involves ::

• Identification of financial transactions and events.
• Measuring of identified transactions.
• Recording
• Classification

Accounting involves ::

• Identification of financial transactions and events.
• Measuring of identified transactions.
• Recording
• Classification
• Summarisation
• Analysis and interpretation
• Communicating financial information to the users.

Book keeping is a part of accounting but accounting is not a part of book keeping.

Book keeping involves only recording the data systematically in the book of accounts whereas accounting involves recording the transaction as well as analysing the recorded data to take a meaningful decision.