Book-Keeping&Accountancy
Quick Revision Notes
ACCOUNTING AND ALL ABOUT IT
1. Introduction
Business involves many financial activities.
Proper recording of transactions is necessary.
Records help determine profit, loss and financial position.
Useful to owners, managers, investors, lenders and government.
2. Evolution of Accounting
Accounting practices existed in ancient times.
1494 – Double Entry System introduced.
Industrial development increased need for accounting.
Modern accounting includes financial and management accounting.
3. Meaning of Book-Keeping
Systematic recording of financial transactions.
Only monetary transactions are recorded.
Transactions are recorded date-wise.
Helps determine final result at year end.
4. Features
Records daily transactions.
Only financial transactions recorded.
Maintained for a specific period.
Follows rules and principles.
Organized and scientific method.
5. Objectives
Maintain complete and accurate records.
Record transactions date-wise and account-wise.
Provide permanent evidence.
Determine profit or loss.
Know assets and liabilities.
Know debtors and creditors.
Compare performance year to year.
Quick Revision Notes
ACCOUNTING AND ALL ABOUT IT
1. Introduction
Business involves many financial activities.
Proper recording of transactions is necessary.
Records help determine profit, loss and financial position.
Useful to owners, managers, investors, lenders and government.
2. Evolution of Accounting
Accounting practices existed in ancient times.
1494 – Double Entry System introduced.
Industrial development increased need for accounting.
Modern accounting includes financial and management accounting.
3. Meaning of Book-Keeping
Systematic recording of financial transactions.
Only monetary transactions are recorded.
Transactions are recorded date-wise.
Helps determine final result at year end.
4. Features
Records daily transactions.
Only financial transactions recorded.
Maintained for a specific period.
Follows rules and principles.
Organized and scientific method.
5. Objectives
Maintain complete and accurate records.
Record transactions date-wise and account-wise.
Provide permanent evidence.
Determine profit or loss.
Know assets and liabilities.
Know debtors and creditors.
Compare performance year to year.
