Question

Answer the following questions :

Explain the difference between Book-keeping and Accountancy.

Answer 1

Point of Distinction	Book-Keeping	Accountancy
Meaning	Book-keeping is concerned with recording and classification of financial transactions.	Accountancy is concerned with summarising, analysing and interpreting the results to the users.
Scope	Book-keeping is narrower in scope, as it is concerned with identifying, recording and classifying the business transactions.	Accountancy is wider in scope, as it is concerned with summarising, analysing and interpreting the results to the users.
Objectives	Main objective is to maintain the systematic record of the financial transactions and events in the books of accounts.	Main objective is to ascertain the financial position of a business and communicating the result to its users.
Nature of Job	It is a kind of clerical job that is routine in nature.	It is a kind of analytical job that is dynamic in nature.
Stage	It is the first stage that forms a basis for accounting.	It is the second stage.
Dependence	Book-keeping serves as the basis for accounting.	It depends on the information provided by book keeping.
Persons who performed	It is basically performed by the book keeper (junior staff).	It is performed by the accountant (senior staff), as it requires analytical thinking.
Knowledge	It does not demand any specialised knowledge of accounts.	It demands specialised knowledge in order to interpret the results and communicate the results to the end users.