Wednesday, 13 August 2014

DEVELOPMENT OF ACCOUNTING, MEANING OF BOOK- KEEPING



DEVELOPMENT OF ACCOUNTING

Lucas F. Pacioli, a resident of Venice (Italy), is regarded as the founder of book-keeping. His book ‘De Computiset Scripturise’ was published in 1494, which is regarded as the first book on book-keeping. Really speaking, it was a book on Arithmetic and book- keeping was described in its one part only. The advent of industrial revolution resulted in large- scale production, competition and extention of market.


MEANING OF BOOK- KEEPING
Book- keeping is an art as well as a science of recording business transactions and other transactions of financial nature related to an individual, firm, company, corporation and other associations of persons and institutions in a certain set of books regularly according to prescribed rules and regulations on the basis of some definite system for fulfillment of certain objects.





DEFINITION OF ACCOUNTING
Where book- keeping ends accounting begins. Accounting refers to process of preparing and presenting the accounts in a scientific and systematic manner.
According to American Institute of Certified Public Accountants (AICPA), ‘’Accounting is the art of recording, classifying, and summarising in a significant manner and in terms of money, transactions and events which are of a financial character and interpreting the results thereof. ’’







 

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