STUDY
MATERIAL - THEORY
Accounting – Journal
, Ledger, Trial Balance, Final Accounts
Book-Keeping:
“Book-Keeping
is the art of recording business transactions in a systematic manner”.
Advantages of Book-Keeping:
1.
Reliable Record.
2.
Calculation of profit or loss
3.
Calculation of Dues.
4.
Control over borrowings.
5.
Control over assets.
6.
Ascertainment of the
growth of business.
7.
Ascertainment of the
financial position.
8.
Identifying Do’s and
Don’ts.
9.
Fixing the selling price.
10. Taxation.
Definition of Accounting:
“The
art of recording, classifying and summarising in a significant manner in terms
of money transactions and events which in part, at least of a financial
character and interpreting the results thereof”.