Question

Give two differences between book-keeping and accounting.

Distinguish between Book-keeping and Accounting.

Answer 1

Basis of Distinction	Book keeping	Accounting
Scope	It is only a part of accounting, therefore its scope is narrow.	Its scope is large as it involves more than book-keeping.
Nature of job	It is of a clerical nature.	It is of an analytical nature.

Answer 2

Basis of Distinction	Book-keeping	Accounting
Scope	Book-keeping 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 book-keeping includes: Summarising the classified transactions. Analysing the summarised results. Communicating the results to interested parties.
Stage	Book-keeping is the primary stage.	It is a secondary stage; accounting starts where book-keeping ends.
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.
Nature of job	The job is routine and clerical in nature.	The job requires analytical skills.
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.