Education and Career Forum

What is the difference between Book Keeping and Accounting? I am doing my 1st-semester B.Com and wanted to get an understanding about this? Any examples which you can quote to understand right or both the topic are same?

There are certain basic difference between Book Keeping and Accounting:

>>Book Keeping is the first step of Accounting. In book keeping, financial transaction of a firm or company is recorded in systematic manner. On the other hand, accounting is activity of recording of financial transaction of company for a specified period.

>>The decision making in any organization is done on basis of observations from accounting process.

>>The important tools for Book keeping is Journals and Ledgers and tools for accounting is balance sheet, cash flow statement, profit and loss account.