Accountancy and book-keeping

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 Accountancy:- 

        Accountancy refers to a systematic knowledge of Accounting. It explains' why to do' and'how to do' of various aspects of accounting. It tells us why and how to prepare the books 📚 of accounts and how to summarize the accounting information and communicate it to the intrested parties.


Accounting:-

   It deals with the following points:

1. Identifying the transactions and events.

2. Measuring the identified Transactions and events in a common Measuring unit.

3. Recording the identified and measured transactions and events.

4. Classifying the recorded Transactions and events in ledger.

5. Summarizing the classified transactions and events in the form of income statement and position statement 

6. Analyzing the summarized results.

7. Interpreting the analyzed results.

8. Communicating the interpreted information to the interested parties.



 

    Book-keeping:-

         Book-keeping is a part of Accounting and is concerned with record keeping or maintenance. Of books 📚 Accounting which is often routine and clerical in nature. It only covers the following activities:


1. Identifying the transactions and events.

2. Measuring the identified Transactions and events in a common Measuring unit.

3. Recording the identified and measured transactions and events in proper books 📚 of accounts.

4. Classifying the recorded Transactions and events in ledger.

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