what is the difference b/w accounting and bookkeeping and accountancy

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Hi Aanchal,

Point of Distinction Book-Keeping Accounting Accountancy

Key Area It is a function of identifying the events of financial character, measuring them in terms of money, recording them in the books and lastly classifying them. Apart from functions of book-keeping it is concerned with summarising, interpreting and communicating the financial information to the various parties interested in business. Accountancy is basically appropriate knowledge of accounting which defines how the accounting principles and techniques are to be followed.

Purpose Main purpose is to record the financial transactions and events in the books of accounts. Main purpose is to find out the net results and financial status of the business and communicating the results to its various users. Main purpose of accountancy includes decision making function.

Relation It depends upon financial transactions. It depends upon book-keeping. It depends upon both book-keeping and accounting.

Knowledge It does not demand any specialised knowledge of accounts. It demands a specialised knowledge of accounting rules and principles. It demands a specialised knowledge of accounting rules and principles.

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Point of Distinction	Book-Keeping	Accounting	Accountancy
Key Area	It is a function of identifying the events of financial character, measuring them in terms of money, recording them in the books and lastly classifying them.	Apart from functions of book-keeping it is concerned with summarising, interpreting and communicating the financial information to the various parties interested in business.	Accountancy is basically appropriate knowledge of accounting which defines how the accounting principles and techniques are to be followed.

Purpose	Main purpose is to record the financial transactions and events in the books of accounts.	Main purpose is to find out the net results and financial status of the business and communicating the results to its various users.	Main purpose of accountancy includes decision making function.

Relation	It depends upon financial transactions.	It depends upon book-keeping.	It depends upon both book-keeping and accounting.

Knowledge	It does not demand any specialised knowledge of accounts.	It demands a specialised knowledge of accounting rules and principles.	It demands a specialised knowledge of accounting rules and principles.