1. Bookkeeping is the recording of financial transactions by way of the double-entry system. The aims of bookkeeping are as follow:
(a) Record, classify and summarize all business transaction in money value.
(b) To record the financial position, in terms of assets, liabilities, and equity of a business, at any given time.
(c) Provide information about:
i. Business expenditure
ii. Business revenue
iii. Debts owed by debtors
iv. Debts owed to creditors
(d) As evidence of business transactions.
1. Accounting summarizes the broader scope of bookkeeping by interpreting, classifying and analyzing financial data, after which reports and financial statements can be made for decision-making purposes. The objectives of accounting are :
(a) To record transactions accurately and systematically.
(b) To provide detailed reports on the business’s financial position.
(c) To allow for the planning and controlling of business activities.
Definition and Objective of Accounting and Bookkeeping