Question

Distinguish between Book Keeping and Accounting.

How does Accounting differ from Book-keeping?

Answer 1

Basis	Book keeping	Accounting
Nature	Bookkeepers do clerical duties.	An accountant's profession requires both analytical skills and creativity.
Scope	Book-keeping is primarily concerned with recording transactions.	Accounting is the classification, summary, analysis, and presentation of information.

Answer 2

Sr. No.	Basis of Distinction	Book-keeping	Accounting
1.	Scope	It is only a part of accounting, therefore its scope is narrow.	Its scope is large as it involves more than book-keeping.
2.	Stage	Book-keeping is the primary stage.	It is a secondary stage; accounting starts where book-keeping ends.
3.	Objective	The objective is to maintain a systematic record of financial transactions.	The objective is to ascertain the profit or loss and financial position and to communicate them to the interested parties.
4.	Nature of job	The job is routine and clerical in nature.	The job requires analytical skills.
5.	Knowledge & experience	Book-keeping job is clerical in nature and hence does not require special knowledge and experience.	Accounting is a specialised job and hence requires accounting knowledge and experience.