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.
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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
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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.
CONSUMER AMD SOCIETY