Question

Distinguish between Book-keeping and Accounting.

Answer 1

The difference between Book-keeping and Accounting is summarised below.

$\begin{array}{ccc}\text{BASIS}& \text{BOOK-KEEPING}& \text{ACCOUNTING}\\ \text{1. Nature}& \text{Book-keeping is considered with}& \text{Accounting is concerned with}\\ & \text{identifying financial transactions,}& \text{summarising the recorded transactions,}\\ & \text{measuring them in money terms}& \text{interpreting them and communicating}\\ & \text{recording and classifying them.}& \text{the results.}\\ \text{2. Relations}& \text{Book-keepingis the basis of}& \text{Accounting beings where book-keeping}\\ & \text{accounting.}& \text{ends.}\\ \text{3. Special}& \text{Book-keeping is mechanical in}& \text{Accounting requires special skills}\\ & \text{skills and nature and thus, does not}& \text{and ability to analyse and interpret.}\\ & \text{require special skills.}& \end{array}$