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Book – keeping is the systematic recording of daily transactions (cash and credit) in the appropriate book. It is the art of keeping proper accounting records of business transactions.

IMPORTANCE OF BOOK – KEEPING

  • Book – keeping serves as a proof in time of doubt or confusion.
  • It helps to determine the profit of the business.
  • The record provides a means by which the finances of a business are controlled.
  • It helps to detect error.
  • It shows income and expenditure of the business.
  • Book – keeping provides a permanent record of all financial transactions.

A bookkeeper is a person charged with the responsibility of taking and keeping records of transactions in an organization.

Essential Qualities of Book – Keeping

  • He/she must be able to write clearly.
  • He/she must be careful and accurate in calculation.
  • He/she must be computer literate.
  • He/she must be intelligent and not a forgetful person.

COMMON BOOK – KEEPING PRACTICE

  • The use of Naira and Kobo on the top of the account
  • The use of two zero in the kobo column
  • The double ruling which indicate the completeness and accuracy of the account
  • The use of ‘F’ to represent folio
  • The use of DR for debit and CR for credit
Date Particular Folio Amount
5 March Sales G 100 50,000:00

BOOK – KEEPING ETHICS / PRACTICES

Book – keeping ethnics refers to the principles used in book – keeping. The principle is developed using double – entry system of Book – keeping.

The double entry system says, “To every debit entry there must be a corresponding credit entry and vice versa”.

The ethnics are:

  • Credit the giver account with the amount paid.
  • Debit the receiver account with the amount received.
  • Balance off the account at the end of the period.

See also:

NEED FOR MONITORING AND CONTROL OF CHEMICALS

CONSUMER AMD SOCIETY

LIMITED LIABILITY COMPANY

PUBLIC CORPORATION

SOLE TRADE

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