1. What is bookkeeping?

Slide 1 - process of keeping track of every financial transaction made by a

business firm from the opening of the firm to the closing of the firm.
It aims to classify and organize every transaction in a business to predict its
profitability.

Slide 2 - This ensures that the financial effects of these transactions are
reflected in the books of accounts.
Book-keeping will eventually ascertain the final accounts of the company,
namely the Profit and Loss Account and the Balance Sheet.

One of the main reasons for bookkeeping is so records can be maintained to

show the financial position of each and every head/account of income and
expenditure. Through book-keeping, detailed information about each expense
or income could be obtained instantaneously. TRACKING OF ALL
TRANSACTIONS IN TERMS OF ASSETS, LIABILITIES AND EXPENSES,
EQUITY AND REVENUE

EXAMPLE:  CREDITORS

IN A LARGER SCALE, the maintenance of books of accounts and financial

Statements is a legal requirement in many cases. (EX. BIR, APPLYING FOR
BUSINESS LOAN)

2. BOOKKEEPING VS. ACCOUNTING

Bookkeeping in a business firm is an important, but preliminary, function to

the actual accounting function. A bookkeeper collects the documentation for
each financial transaction, records the transactions in the accounting journal,
classifies each transaction as one or more debits and one or more credits,
and organizes the transactions according to the firm's chart of account.

At the end of the appropriate time period, the accountant takes over and
analyzes, reviews, interprets and reports financial information for the
business firm. The accountant also prepares year-end financial statements
and the proper accounts for the firm. The year-end reports prepared by the
accountant have to adhere to the standards established by the Financial
Accounting Standards Board (FASB). These rules are called Generally
Accepted Accounting Principles (GAAP).
3. ACTIVITIES OF BOOKKEEPING
ANALYZING – SOURCE DOCUMENTS - The source document is essential
to the bookkeeping and accounting process as it is the evidence that a
financial transaction occurred.
The source document should be recorded in the appropriate accounting
journal as soon as possible after the transaction. After recording, all source
documents should be filed away in some sort of system where they can be
retrieved if and when they are needed.
https://www.toppr.com/guides/principles-and-practice-of-accounting/meaning-
and-scope-of-accounting/bookkeeping/