An Introduction to Business and Accounting,

Introduction to accounting and bookkeeping

Explain the nature of bookkeeping and its function within a business,

• The role of accounting and purpose of bookkeeping within an organization 
• Key functions and duties of a bookkeeper 
• Attributes of an effective bookkeeper: responsibility, accuracy, confidentiality, ethics 
• The terminology of bookkeeping and its use 
  

Meaning: Book Keeping is the process of maintaining financial transactions and it is a part of accounting.

Definition: Book Keeping is the science and art of recording correctly in the books of account all those business transactions that result in the transfer of money or moneys worth.

Branches and system of Accounting

Branches or Sub-disciplines within the Accounting Discipline.

• Financial accounting: It helps in keeping a proper record of financial transactions for the preparation and presentation of financial reports to measure the financial success and soundness. It is concerned with providing of financial information to all the users.

• Cost accounting: It helps in analysing the expenses to find the cost of various products manufactured or services provided by the firm and in fixing their prices. It also helps in controlling the costs and providing necessary costing information to the management for decision-making.

• Management accounting: It deals with providing the necessary accounting information to people within the organisation to help them in decision-making, planning and controlling business operations. Management accounting draws the information mainly from financial accounting and cost accounting which helps the management in various areas. 

The systems of accounting.

• Double Entry System: It is a system of accounting where each transaction is recorded with 2 aspects, namely debit and credit of a financial transaction. Every debit of a transaction will have a corresponding credit. This system is based on the Principle of Dual Aspect.

• Single Entry System: This system is explained as an incomplete double entry system of recording of transaction where the double entry system of debit and credit is not followed.