What is book keeping? Book keeping is the name used to describe the recording of cash and credit transactions so that information relating to the transactions may be easily obtained.

Book-keeping is an important activity which is performed by an individual, business or other organisation.


It can also be defined as the act of systematically keeping records of all financial transactions in a chronological order.[xyz-ihs snippet=”Google-Adsense”]

Book-keeping is usually performed by a book keeper who ensured that all transaction are recorded in the correct day book, supplier ledger, customer ledger and general ledger. The methods of recording the transactions are strictly based on accounting principles.


Importance of book-keeping

  1. It enhances the proper running of the financial affairs of a business or person.
  2. Book keeping will help a business man or women to monitor and manage cash flow that is identify where there is over-spending and eventually lead to adjustments.
  • It enables a business owner to have a greater understanding of how much progress the business has made.
  1. It helps a business owner to be able to analyse and manage a business by providing an up-to-date follow ups on business transactions.
  2. It enables a business man/woman to plan ahead for his/her business easily.
  3. It enables a business to meet deadlines
  • It will also help in setting goals for the business.


Who is a book-keeper?

A book keeper is also known as an accounting clerk. He/she is someone who produces financial records for businesses or organisations by recording the day-to-day financial transactions of such business or organisation.


Functions of a book-keeper

  • He/she update financial transactions
  • He/she updates statement and check financial records for accuracy of purchases, sales, receipts and payment.
  • He/she is also responsible for ensuring that all transactions are recorded in the correct day book supplies ledger, customer ledger and general ledger.


Essential qualities of book-keepers

  1. A book keeper must be professionally competent.
  2. A book keeper must be transparent and honest while recording transaction
  3. Neatness and clarity of work
  4. Computer literacy
  5. He/she must have organizational skills
  6. He/she must be able to operate any equipment under his or her control.


Common book-keeping practices

In book keeping practices, certain things are common. These include:

  1. The currency signs (e.g. naira and kobo) are written on top before the ruled column.
  2. Two zeros are written in the kobo column when an amount is in naira only if the column is left blank there might be some doubt as to whether the recordings of the kobo was forgotten.
  3. When an accountant rules a single line beneath an amount, it indicate that either a total or a remainder will follow.
  4. A double ruling across an amount column indicates that work above the double lines is complete and accurate.
  5. For neat accounting work, a ruler is needed for rulings.


Date Particulars Amount N: K –          1
June 4 Office supplies 30,000.00 –          2
June 5 Office equipment 40,000.00 –          3
June 6 Rentage 10,000.00 –          4


Book keeping ethics

Some of the most important book-keeping ethics are the following:

  1. Accountability
  2. Probity: They must exhibit a high standard of moral behaviour
  3. Transparency
  4. Confidentiality
  5. Integrity
  6. Continuous improvements.




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