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Distinction between Book-keeping and Accounting



S.No
Book-keeping
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
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

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