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  • Meaning

Book-keeping is the proper and systematic keeping or maintenance of the books of accounts.

Book-keeping starts from the identification of business transactions. These transactions must be supported by the documents and they must be financial in nature. For example, selling goods for cash is an accounting transaction, because cash is received and goods are going outside the business. The transaction will increase cash and reduce goods. It will affect the finances of the business. There will also be documentary proof of the transaction because cash memo must have been issued for sale. The book-keeper after identification of the accounting transaction will record it in the proper books of accounts.

  • Definition

Book-keeping may be defined as the science and art of identifying and recording accounting transactions systematically in the proper books of accounts.

According to North Cott, “Book-keeping is the art of recording in the books of accounts the monetary aspect of commercial or financial transactions.” 

Prof. R.N. Carter defines, “‘Book-keeping as the science and art of correctly recording in the books of accounts aft those business transactions that result in the transfer of money or money’s worth.”

Book-keeping is concerned with the proper maintenance of the books of accounts i. e., journal, ledger, cash book and other subsidiary books. It is not concerned with disclosing or interpreting the results of the business.