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Difference between Book-keeping and Accounting
Book keeping is mainly concerned with record keeping or maintenance of books of account. It includes identifying the financial transactions, measuring them in terms of money, recording them in the books of original entry and then classifying them into ledger.
Accounting is more than Book-keeping. Apart from the standard practices of Book-keeping it involves summarizing the classified information in the form of Profit and Loss Account and Balance Sheet, drawing meaningful information from them and communicating this information with the interested parties i.e. stakeholders.
‘Booking keeping’ is a part of accounting as it only involves recording of economic events.
