book keeping introduction merits of bookkeeping

BOOK KEEPING

Book keeping is the system of recording business

activities for the purpose of providing relaiable

information to the owners and mangers about the

state and propects of the business concern

 Merits of book keeping

 Merits to business man
 Merits to goverment
 Merits to employess
 Merits to consumers
 Merits to management
 Merits to investors

For business man

 It helps in acquiring main information about

business

 It helps inbuying and selling of business

 It facilitates comparison of the accounts of

various years

 It helps in obtaning loan

 It helps valuing good will

 It helps in controlling empolyees\

To goverment

 Financial help is given by the goverment on the

basis of accounting record

 Country industrial progress cab be judged on its

basis

 It helps making assesment

 It helps in providing licences

Merits to management

 Its on basis of accounting record that the

management makes new polices alters

excisting methods and formulates new scheme

To empolyees

 Accounting records help the employees in all

matters relating to their wages salaries bonus

etc.

To consumers

 Correct cost price and selling prices are fixed

on basis to accurate accounting record there

fore consumers can get manufactured articles

at reasonable price

To inverstors

 Prospectiveinverstors are geager to know the

past and present position of the unit concerned

he also makes an interpretataion about the

future of the business unit he does all this on

basis of accounting record