INTRODUCTION TO BOOK-KEEPING:MEANING, IMPORTANCE, QUALITIES OF A BOOK-KEEPER, PRACTICE AND ETHICS—BY INSTRUCTOR EUNICE OKOYE
MEANING OF BOOK-KEEPING: Book-keeping is the systematic recording of daily transactions of a business in the appropriate books. The art of keeping correct accounting records of business transactions.
IMPORTANCE OF BOOK-KEEPING.
It provides a permanent record of all financial transactions.
The record indicate both the income and expenditure of the business.
It helps to summarise and classify business transactions.
It shows how the finances of a business is controlled.
It helps to determine the profit of the business.
It has the business man to know the financial strength of the business.
It serves as a proof in case of confusion.
Errors can be detected in business transaction.
QUALITIES OF A BOOK-KEEPER- A good book-keeper must posses the following qualities:
He must be able to write legibly.
He must be careful and accurate in calculations.
He/she must be computer literate.
He must not be a forgetful person.
COMMON BOOK-KEEPING PRACTICE: The common book-keeping practices involves the use of naira and kobo on the top of the account, two zeros in the kobo column, the double ruling which indicates the completeness and accuracy of the account, the use of ‘’f’’ to represent folio in one of the column and the use of DR for debit and CR for credit.
BOOK-KEEPING ETHICS/PRACTICES: This is the principles used in book keeping. The principle is developed using double entry system of book keeping. It states that in every debit entry, there must be a corresponding credit entry and vice versa. These ethics are :
Credit the givers account with the amount paid.
Debit the receivers account with the amount received.
Balance off the account at the end of the period.