Definition and Explanation of Bookkeeping:
Learning Objectives:
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Define and explain the term
bookkeeping.
The work book or books mean
books of accounts and keeping implies maintaining in proper form and order.
Thus bookkeeping may be defined as the art of recording business
transactions in books in a regular and systematic manner. It has been
defined by different experts as:
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"The science and art of
correctly recording in books of accounts all those business transactions
that result in the transfer of money's worth."
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"The art and science of
recording business transactions in such a systematic way as a trader may
know the result of his trade at the end of a certain period and may also
prove the accuracy of such record."
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"The science and art of
correctly recording business dealings in a set of books with a view to
having a permanent record of transactions and the financial result thereof."
It should be noted from the
above definitions that bookkeeping primarily deals in the art of recording
transactions in books.
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