Bookkeeping is the process of recording a company's financial transactions in organized accounts on a daily basis. It provides advantages such as keeping permanent records of transactions, tracking updated financial records cost-effectively and evaluating profit or loss quickly. Bookkeeping also helps assess assets and borrowings, calculate taxes and dues, and exercise control over a company's finances.

1. What is book keeping and its advantages
Answer: Book keeping is the process of recording organisation financial transactions into organized
accounts on a daily basis
Advantages:
1. Permanent and reliable record- It helps to keep permanent record of all financial transactions
2. Cost effective: It is cost effective process. It helps to keep track of updated record of financial
transaction
3. Time effective: It helps to evaluate financial transaction quickly
4. Net result of Business Operation: It helps to quickly evaluate loss or profit
5. Calculation of dues: It helps to assess the dues
6. Control over assets:It helps to evaluate value of the assets.
7. Control over borrowings: It helps to evaluate value of the borrowings.
8. Taxation: It helps to calculate taxes.