Question

Give two differences between book-keeping and accounting.

Distinguish between Book-keeping and Accounting.

Distinguish between book-keeping and accountancy.

Answer 1

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.
2.	Nature of job	It is of a clerical nature.	It is of an analytical nature.

Answer 2

Sr. no.	Basis of Distinction	Book-keeping	Accounting
1.	Scope	Bookkeeping includes: Identifying the transactions of a financial nature. Measuring the identified transactions in money terms. Recording the measured transactions.  Classifying the recorded transactions.	Accounting, in addition to bookkeeping, includes: Summarizing the classified transactions. Analyzing the summarized results. Communicating the results to interested parties.
2.	Stage	Bookkeeping is the primary stage.	It is a secondary stage; accounting starts where bookkeeping 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	Bookkeeping jobs are clerical in nature and hence do not require special knowledge and experience.	Accounting is a specialized job and hence requires accounting knowledge and experience.