2. BOOK KEEPING
Bookkeeping is the recording of financial
transactions like sales, purchase, income, receipts and
payments by an individual or organization.
Bookkeeping is usually performed by a book-keeper
3. Importance of book keeping
๏ต Tool of management, planning and control
๏ต Ready reference wherever information is required.
๏ต It helps in the calculation of profits and losses.
๏ต It helps the government in assessing taxes.
๏ต It also acts as a ready reference whenever sales or purchases are made in business.
๏ต It helps in easy dealing with creditors and debtors.
๏ต It helps potential investors in analyzing the financial position of the business.
๏ต Facilitates Easy access to loans from financial institutions.
๏ต Provision of information for research purposes
๏ต Provides employment opportunities
4. Users of accounting information
INTERNAL USERS
๏ต Management
๏ต Internal Auditors
๏ต Employees
EXTERNAL USERS
๏ต Creditors
๏ต Investor
๏ต Government
๏ต Donors
๏ต Banks or Lenders
๏ต The general public
5. Source documents used in a business
๏ต Salary Pay slips
๏ต Cash pay slip
๏ต Cash payment voucher
๏ต Cash receipt
๏ต Cheque counter foils
๏ต Debit note
๏ต Credit note
๏ต I.O.U
๏ต Statement of account
๏ต Goods received note
๏ต Invoice
๏ต Local purchase order
๏ต Bank deposit slip
๏ต Delivery note
๏ต Cheque
๏ต Bank statement
