BOOK KEEPING.
Bookkeeping is the act of recording day-to-day financial transactions of the business.
Bookkeeping is the act and process of organizing and recording all business transactions that have
occurred in course of the business.
Like if you sell stationary,any sales you write down like sales of s pen or pencil is referred to as
bookkeeping.
The way the bookkeeping is managed determines the accuracy of the overall accounting
process that is being followed by the business. Do bookkeeping helps that the records of
financial transactions are up-to-date and accurate.
IMPORTANCES OF BOOK KEEPING
Bookkeeping helps us to know the receipts,payments,sales,purchases and record of all business
transactions made .
It helps in simplifying and summarizing incomes and expenditures and all ledger recordings over time.
Bookkeeping helps in providing all the information that is needed in creating financial reports ,which
helps us to know if a business is making profits or losses and it’s worth over a given period of time.
TYPES OF BOOK KEEPING
Single entry
Single entry bookkeeping is a form of bookkeeping characterized by the fact that only one entry is made for
each transaction.
It usually works very well for business that’s are just starting up or that are small.
Let’s take an example of a retail shop,when a seller only records sales of goods in a single line and expenses in
another line ,that’s still considered to be single entry.
Its an easy way of recording for a business since you just write down what you sell or spend.
Double entry
Double entry bookkeeping is a form of bookkeeping where by two entries are made for each transaction that is
a debit in one account and a credit in another .
This type of bookkeeping is usually used by fairly large organisation for they need to keep detailed track of all
the transaction they carry out.
An example of double-entry transaction would be if the company wants to purchase a car using cash. The cash
account would be reduced by the amount the company wants to buy the car. Then the double-entry would
debit the car account with the same amount that was credited on the cash account.
DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTING
Single-entry bookkeeping has one entry per transaction while double-entry bookkeeping has two entries per
transaction that is a debit and a credit.The debit is recorded in one account while the credit is recorded in
another ,on the other hand ,single entry bookkeeping only uses one account per transaction.
Bookkeeping is the act of recording day-to-day financial transactions of the business.
Bookkeeping is the act and process of organizing and recording all business transactions that have
occurred in course of the business.
Like if you sell stationary,any sales you write down like sales of s pen or pencil is referred to as
bookkeeping.
The way the bookkeeping is managed determines the accuracy of the overall accounting
process that is being followed by the business. Do bookkeeping helps that the records of
financial transactions are up-to-date and accurate.
IMPORTANCES OF BOOK KEEPING
Bookkeeping helps us to know the receipts,payments,sales,purchases and record of all business
transactions made .
It helps in simplifying and summarizing incomes and expenditures and all ledger recordings over time.
Bookkeeping helps in providing all the information that is needed in creating financial reports ,which
helps us to know if a business is making profits or losses and it’s worth over a given period of time.
TYPES OF BOOK KEEPING
Single entry
Single entry bookkeeping is a form of bookkeeping characterized by the fact that only one entry is made for
each transaction.
It usually works very well for business that’s are just starting up or that are small.
Let’s take an example of a retail shop,when a seller only records sales of goods in a single line and expenses in
another line ,that’s still considered to be single entry.
Its an easy way of recording for a business since you just write down what you sell or spend.
Double entry
Double entry bookkeeping is a form of bookkeeping where by two entries are made for each transaction that is
a debit in one account and a credit in another .
This type of bookkeeping is usually used by fairly large organisation for they need to keep detailed track of all
the transaction they carry out.
An example of double-entry transaction would be if the company wants to purchase a car using cash. The cash
account would be reduced by the amount the company wants to buy the car. Then the double-entry would
debit the car account with the same amount that was credited on the cash account.
DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTING
Single-entry bookkeeping has one entry per transaction while double-entry bookkeeping has two entries per
transaction that is a debit and a credit.The debit is recorded in one account while the credit is recorded in
another ,on the other hand ,single entry bookkeeping only uses one account per transaction.
