DEPARTMENT OF TECHNICAL

EDUCATION ANDHRA PRADESH

Name : R. Radha
Designation :Assistant Lecturer
Branch :Commercial and computer
practice
Institute :Central Institute of commerce
Year :I year
Subject : Accountancy
Subject Code : CCP102.3
Topic : Introduction to Accounting
Duration : 50 minutes
Sub Topic : Merits and Demerits of
Book Keeping
Teaching Aids : PPT, Animations
CCP102.3 1
Objectives
On completion of this period you will be
able to know

 Merits of book-keeping

 Demerits of Book-Keeping

CCP102.3 2
Merits of Book-keeping

 Replacement of human memory

 Profit and Loss

 Financial Position

CCP102.3 3
 Merits contd.
 Reviewing

 Controlling

 Decision making

CCP102.3 4
Merits Contd.
 Stands Evidence in Court of law

 Sale of Business made easy

 Help to insolvent Business men

CCP102.3 5
Demerits of Book- keeping

 Profit figure not exact

 Does not reveal what the

 business will realize

 Non monetary transaction ignored

CCP102.3 6
 Demerits contd.

 Prepared wrongly by adopting different

methods
 Human resource an important asset not
records
 Figures become outdated in times of rising
prices

CCP102.3 7
Summary

We have learned in this session

 The function of book-keeping
 Merits and Demerits of Book-Keeping

CCP102.3 8
 Quiz
• Book-keeping helps in knowing changes in
the _______________
value of assets
• ____________
Book-Keeping helps in decision making.
• Profit revealed cannot be ____________
Exact

CCP102.3 9
Frequently Asked Questions
 List the Merits and Demerits of Book Keeping

CCP102.3 10
CCP102.3 11