Bizgate believes that Book-keeping is the art of proper and systematic identification and recording business transactions in the maintenance of book of accounts (such as journal, ledger, cash and subsidiary books). It is often routine and clerical in nature. The activities of book-keeping include recording in the journal, posting to the ledger and balancing of accounts.

PROCESS OF BOOK KEEPING INVOLVES THE FOLLOWING STEPS

• Identifying accounting transactions (which may be money or money worth transactions with documentary evidence. Credit transactions are money worth transactions).
• Records Initial accounting transactions
• Preparation of ledger accounts
• Preparation of trial balance

Book-keeping does not present a clear financial picture of the state of affairs of a business. When one has to make a judgement regarding the financial position of the firm, the information contained in these books of accounts has to be analysed and interpreted. It is with the purpose of giving such information that accounting came into being. Auditing services are considered as a system which collects and processes financial information of a business. These information are reported to the users to enable them to make appropriate decisions.
The main objectives of accounting are

• Maintain accounting records.
• Calculate the result of operations i.e. to calculate profit or loss
• Ascertain the financial position
• Communicate the information to users