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S.No
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Book-keeping
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Accounting
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1
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It
is the recording phase of an accounting system
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It
is the summarizing phase of an accounting system
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2
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It
s the basis of accounting
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It
s the basis for business language
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3
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Persons
responsible for bookkeeping are called book-keeper
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Persons
responsible for accounting are called accountants
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4
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It
does not require any special skill or knowledge
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It
requires special skill and knowledge
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5
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Personal
judgments of the bookkeeper is not required
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Personal
judgments of the accountant is essential
|
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6
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Financial
statements are not prepared from bookkeeping records
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Financial
statements are prepared from accounting records.
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7
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It
does not give the complete picture of the financial condition of the business
unit
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It
gives the complete e picture of the financial
condition of the business unit
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8
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It
does not provide any information for taking managerial decisions
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It
provides information for taking managerial decisions
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9
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It
has no branch
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It
has several branches, e.g. financial accounting, cost accounting and
management accounting
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Book-keeping system: Book keeping is the art of recording monetary transactions in the books of account in a proper manner. It primarily focuses on the recording aspect of the transactions. 1. Single entry system : A system in which we do not record both aspects of the transactions i.e. debit and credit. It is normally used by the small businesses who keep the incomplete record of the transactions. Feature of single entry system: 1. Oldest system of recording. 2. Simple and easy. 3. No professional Knowledge is required. 4. No definite methods or principles. 5. Suitable for small business. 6. No complete record of all transaction 7. Not acceptable by the audit and tax authorities. 8. Income or loss is calculated by increase or decrease in assets and liabilities over a period. 2. Double entry system : It is a system of accounting in which both debit and credit aspects of the transactions are
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