Difference between Book Keeping and Accounting

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

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

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