Accounting starts where bookkeeping ends. Elaborate this statement by giving a proper
explanation.
Dear Student
Book-keeping is the primary stage of accounting. Book-keeping is concerned mainly with the recording of entries in journal, posting of entries in ledger, totalling and balancing of various accounts in ledger. In simple words, all the recording process up to the preparation of trial balance is included in book-keeping.
On the other hand, accounting includes checking of the work done in book-keeping, preparation of Trading and Profit & Loss Account and Balance Sheet as well as preparation of important reports for analysis and interpretation. In fact, Accounting is a wider term which includes book-keeping as its primary stage. From the sequence point of view, it is said that "accounting starts where book-keeping ends."
Regards
Book-keeping is the primary stage of accounting. Book-keeping is concerned mainly with the recording of entries in journal, posting of entries in ledger, totalling and balancing of various accounts in ledger. In simple words, all the recording process up to the preparation of trial balance is included in book-keeping.
On the other hand, accounting includes checking of the work done in book-keeping, preparation of Trading and Profit & Loss Account and Balance Sheet as well as preparation of important reports for analysis and interpretation. In fact, Accounting is a wider term which includes book-keeping as its primary stage. From the sequence point of view, it is said that "accounting starts where book-keeping ends."
Regards