WEEK TEN
TOPIC: 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 records of all financial transactions
A book –keeper 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.
Assignment
- What is book – keeping?
- State three essential qualities of book – keeping
- Workbook