Meaning Of Book Keeping
Book keeping is the systematic recording of transactions on daily basis in the appropriate Book. It is the recording of cash and credit transaction so that information relating to the transactions may be easily obtained.
Importance Of Book Keeping
1) Book keeping information can be useful to decision making.
2) It provides payment records for all transactions.
3) It helps to determine profitability of the business.
4) It helps to prevent fraudulent practices.
5) It helps to monitor the progress of the business.
6) It helps to make quantitative decision on the finances of the organization.
Essential Qualities Of Book Keeper
1. Careful and Accuracy: A book keeper must be careful to record information accurately, He/She should be careful to avoid mistake while posting accounting information.
2. Completeness: All the transactions and accounting arrangements must be completely recorded in the accounting system.
3. Up-To-Date: The accounting records must be recorded as soon as the transaction takes places and should be recorded in the appropriate book immediately the transactions takes place.
4. Integrity: A book keeper must have good moral and unquestionable character.
5. Honesty: He/She should not chest or steal. He must truthful.
Ethics Of Book Keeping
1. A book keeper should not engage him/herself in fraudulent activities.
2. Records in book keepers custody should be kept secret and confidential.
3. A book keeper should be honest – that is, he must be transparent.
Common Book Keeping Practice
1. The Naira and kobo sign are not indicated in a ruled column, it is usually written on top.
2. Two zeros are written in the kobo column when an amount is in Naira only.
3. A double ruling across an amount column indicates that work above the double lines is complete and accurate, Double lines is used to indicate the account.
4. For nest accounting work, the accountant makes use of ruler.