|
S.No
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Book-keeping
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Accounting
|
|
1
|
It
is the recording phase of an accounting system
|
It
is the summarizing phase of an accounting system
|
|
2
|
It
s the basis of accounting
|
It
s the basis for business language
|
|
3
|
Persons
responsible for bookkeeping are called book-keeper
|
Persons
responsible for accounting are called accountants
|
|
4
|
It
does not require any special skill or knowledge
|
It
requires special skill and knowledge
|
|
5
|
Personal
judgments of the bookkeeper is not required
|
Personal
judgments of the accountant is essential
|
|
6
|
Financial
statements are not prepared from bookkeeping records
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Financial
statements are prepared from accounting records.
|
|
7
|
It
does not give the complete picture of the financial condition of the business
unit
|
It
gives the complete e picture of the financial
condition of the business unit
|
|
8
|
It
does not provide any information for taking managerial decisions
|
It
provides information for taking managerial decisions
|
|
9
|
It
has no branch
|
It
has several branches, e.g. financial accounting, cost accounting and
management accounting
|
The ledger is a book which contains a classified record of all similar transactions of the business, brought from the journal or from books of original entry. Note: the record kept in ledger is called “classified record” or “condensed record”. Types of ledger Ledger accounts can be prepared in the following two ways: 1- “T” accounts form/Traditional/Standard/Conventional form (British) 2- Running Balance Form/Modern Form (American) Different names of ledger Ø Secondary book Ø Book of final entry Note: ledger is King of all books of accounts. Sub-division of Ledger: 1. Debtors’ Ledger or customers’ Ledger or sales Ledger. 2. Creditors’ Ledger or Suppliers’ Ledger or purchase Ledger 3. General Ledger or nominal Ledger.
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