Question

Write any three objectives of Book-keeping.

Answer 1

Objectives of Book-keeping:

(1) Knowledge of Sale and Purchase of Goods: With the help of account books, a record of total sales and

purchases during a particular period can be maintained.

(2) Knowledge of Income and Expenses: The record of various incomes and expenses is kept in such a way that the net profit or loss during a particular period can be readily ascertained.

(3) Record of Assets and Liabilities: Another objective of book-keeping is to keep records of various assets and liabilities in such a way that the financial position of the business at the end of the accounting period may be determined.