Book
Keeping
|
Accounting
|
1. It is only recording phase of
accounting work
2. It does not required special
skill
3. It does not required special
education or knowledge
|
1. It is recording and summarizing
phase of accounting work
2. It required special skill
3. It required special education
or Knowledge
|
Wednesday, August 21, 2013
Difference between Book Keeping and Accounting
Book Keeping
An
art of recording business transactions in the book of accounts is called Book
Keeping.
Income / Revenue
Earning
of the business in the accounting period is called income /Revenue of the
business.
Expense
A
cost which is allocated to accounting period is called expense. For example; Wages, salaries, marketing expense, Insurance expense, telephone bill, electricity bill
OR
A
part of expenditure whose benefit is received during accounting period. For example: Depreciation, Amortization, Depletion etc
Tuesday, August 20, 2013
Intangible Assets
Assets
which are used in the operation of the business but have no physical existence
and non current assets are called intangible assets.
For example: Patents,
Copyrights, Trademarks, Preliminary expenses
Tangible Assets / Fix Assets
The
term “Tangible Assets” describe physical assets
Assets are economical resources that provide
benefit to the organization in future are called assets.
.
For example: Plant, Machinery,
Furniture, Land, Building
Current Assets
Assets
which are convertible into cash in one year are called current assets. For
Example: Cash, Account Receivable
Subscribe to:
Posts (Atom)