Book-keeping - QS Study
QS Study

Book-keeping is a division of acquaintance which tells us how to maintain a documentation or record of business transactions. It is regularly routine and clerical in nature. It is significant to note that only those dealings connected to business which can be articulated in terms of money are recorded. The behavior of book-keeping include recording in the journal, posting to the ledger and balancing of accounts.

Objectives: The objectives of book-keeping are

  • to cover stable evidence of all business dealing or transactions.
  • to maintain records of profits and operating cost in such a method that the net earnings or net loss might be calculated.
  • to maintain records of property and liabilities in such a method that the economic situation of the company might be ascertained.
  • to recognize the names of the clients and the total payable from them.
  • to recognize the names of suppliers and the total payable to them.
  • to comprise vital information for tax purposes.