BOOK-KEEPING

The main aim of every business is to earn a profit. Profit is nothing but the excess of income over expenditure. So to calculate profit the businessman must record the incomes and expenditure related to his business, this recording of business transactions is called, this recording of business transaction is called book-keeping. Thus book-keeping means recording, classifying and summarizing business transactions systematically so that the businessman may be able to know his profit or loss during a specified period.