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Distinction between book-keeping and Accounting

Book-keeping and accounting differ from each other in the following respects.
 

Book-keeping

Accounting

It is a process concerned with recording of transactions

It is a process concerned with summarising of the recorded transactions

It is a primary stage

It is a secondary stage. It starts where book-keeping ends

The basic objective is to maintain systematic records of financial statements

The basic objective is to ascertain the net results of business operation and the financial position

Financial statements do not form a part of this process

Financial statements are prepared in this process on the basis of the records maintained under book-keeping

Managerial decisions cannot be taken with the help of these records

Management takes decisions on the basis of these records

There is no sub-field under book-keeping

It has several sub-fields

Financial position of the business cannot be ascertained through book-keeping records

Financial position of the business is ascertained through accounting





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