DIFF. BETWEEN BOOK
KEEPING AND ACCOUNTING
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Book Keeping
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Accounting
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1. It is the process concerned with recording of transaction
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1. It is the process concerned with summarizing of the recorded
transaction.
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2. It is the basic of accounting.
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2. It is the basic of business language.
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3. Person responsible of book – keeping are called book keeper.
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3. Personal responsible for accounting are called accountant.
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4. It does not require any special skill or knowledge.
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4. It requires special skill and knowledge.
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5. Personal Judgement of the book keeper is not required.
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5. Personal judgement of the accountant is essential.
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6. Financial statement are not prepared from book keeping record.
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6. Financial statements are prepared from accounting records.
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7.It does not give the complete picture of the financial condition of
the business unit.
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7. It gives the complete picture of the financial conditions of the
business unit.
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8. It does not help complying with legal formalities.
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8. Legal formalities can be complied with help of accounting.
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9. It does not provide any information for talking managerial
decision.
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9.It provides Information for talking managerial decision.
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10. It has no Branches.
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10. It has several branches like Financial accounting, cost
accounting, Management accounting etc.
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