Book keeping:
can be defined as the art of recording financial business transaction in the set of books in terms of money or money's worth.
Objectives of Book keeping.
The following are the major objectives of book keeping;
- To ascertain/determine the amount of profit or loss arising in the course of business. If the business man/woman keep records by all means he/ she should know whether they run business into profit or losses.
- Knowledge of Credit dealing. To know the amount of debtors and creditors and (customers and suppliers respectively) A business Man/ Woman obtained the knowledge of Credit dealing.
- Business control. A business man / woman can be able to control his /her business as required by the principle, because he /she would be able to follow the proper records.
- Fair tax assessment. The income tax department requires proper records in order to determine a fair [reasonable] tax charge
- To determine the financial position of the business. In order to know the value of property and the amount of capital and capital efficiency, the business man/woman need to keep the record of book keeping, the owned and their capital increase or decrease.