BBA 1st Semester Bookkeeping Notes

Difference between Bookkeeping and Accounting

Bookkeeping is the part of accountancy. Accounting is concerned with the initial records, ledger accounts, trial balance, and also with the preparation of financial statements to ascertain profit and loss of the business.

Difference between Bookkeeping and Accounting

(BBA Study Material Financial Accounting Objective Notes )

Basis of Difference Bookkeeping Accounting
1. Object The objective of bookkeeping is to prepare original book of accounting It is restricted to journal, subsidiary book and ledger account only. The Object of accounting is to record, analyse and interpret the business transaction.


2. Scope It has limited scope and is concerned with the recording of business transaction. It has wider scope as compared to bookkeeping.


3. Level of works Its is restricted to low level of work as clerical work is involved in it. It is concerned with level. Medium level and top-level management. Low level clerks prepare the accounts, medium level report it to top level to interpret it.
4. Special skills It dose not require any special know-ledge and skills. It requires special knowledge and skills.
5. Mutual dependence Bookkeeping is only an art of recording transaction, so it has to depend upon accounting which makes it more meaningful and purposeful. Accounting is based upon bookkeeping which is its initial and vital part. It depends upon the bookkeeping.

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