Bookkeeping

Introduction:

The need for a system by which man might keep a record of his business transactions with his fellowmen was felt early in the history of civilization. Many and varied methods were used to record the transactions. But bookkeeping had its beginning at a comparatively recent date and it has passed through many phases since its institution. With the development of commerce it has attained a position of great importance and today the whole fabric of modern commerce rests on bookkeeping. The main objects of bookkeeping can be said to be the following:
  1. It must provide a permanent and systematic record of all business transaction
  2. The periodical results as to profit or loss should be readily and accurately ascertainable.
  3. To enable financial data to be supplied for management of the business
  4. The entries and narrations should clearly show the nature and effect of each transaction and the combined result of all taken together