Distinction between Book-keeping and Accounting
1. Output of book-keeping is an input for
accounting while Output of accounting permit informed judgements and decisions by the user of accounting information.
2. Purpose of book-keeping is to keep
systematic record of transactions and
events of financial character in order of its occurrence while Purpose of accounting is to find results of operating activity of business and to report
financial strength of business.
3. Book-keeping is a foundation of
accounting while Accounting is considered as a language of
4. Book-keeping is carried out by junior staff While Accounting is done by senior staff with skill of analysis and interpretation.
5. Objects of book-keeping is to summarize the cumulative effect of all economic transactions of business for a given period by maintaining permanent record of each business transaction with its evidence and financial effects on accounting variable while Object of accounting is not only bookkeeping
but also analyzing and interpreting reported financial information for informed decisions.