INTRODUCTION TO BOOK – KEEPING

Book – keeping is the systematic recording of daily transactions (cash and credit) in the appropriate book. It is the art of keeping proper accounting records of business transactions.

IMPORTANCE OF BOOK – KEEPING

Book – keeping serves as a proof in time of doubt or confusion.
It helps to determine the profit of the business.
The record provides a means by which the finances of a business are controlled.
It helps to detect error.
It shows income and expenditure of the business.
Book – keeping provides a permanent record of all financial transactions.

A bookkeeper is a person charged with the responsibility of taking and keeping records of transactions in an organization.

Essential Qualities of Book – Keeping

He/she must be able to write clearly.
He/she must be careful and accurate in calculation.
He/she must be computer literate.
He/she must be intelligent and not a forgetful person.

COMMON BOOK – KEEPING PRACTICE

The use of Naira and Kobo on the top of the account
The use of two zero in the kobo column
The double ruling which indicate the completeness and accuracy of the account
The use of ‘F’ to represent folio
The use of DR for debit and CR for credit

Date	Particular	Folio	Amount
5 March	Sales	G 100	50,000:00

BOOK – KEEPING ETHICS / PRACTICES

Book – keeping ethnics refers to the principles used in book – keeping. The principle is developed using double – entry system of Book – keeping.

The double entry system says, “To every debit entry there must be a corresponding credit entry and vice versa”.

The ethnics are:

Credit the giver account with the amount paid.
Debit the receiver account with the amount received.
Balance off the account at the end of the period.