Concept of Book Keeping:
Bookkeeping is the systematic process of recording the day-to-day financial activities and transactions of the business in the books of the account. Bookkeeping is a related with preparation of journal, posting into the ledger account. ( लेखाको किताबमा दैनिक आर्थिक गतिविधि र व्यापारको लेनदेन रेकर्ड गर्ने व्यवस्थित प्रक्रिया हो। बहीखाता जर्नलको तयारी, खाता खातामा पोष्ट गर्नेसँग सम्बन्धित छ। )
According to JR “ The art of recording the business transaction in the set of book”. The main purpose of bookkeeping is to record the financial transaction and classified it.
Objectives of bookkeeping
- To identify the financial transaction
- To classify the financial transaction
- To keep the systematic record of financial transaction.
- ( वित्तीय लेनदेन पहिचान गर्न
- वित्तीय लेनदेन वर्गीकरण गर्न
- वित्तीय लेनदेनको व्यवस्थित अभिलेख राख्न। )
Concept of Accounting:
Accounting is the systematic process of recording the financial transaction and summarizing the financial transaction, analyzing and reporting the financial transaction at the regular interval time period.
(लेखा भनेको वित्तीय लेनदेन रेकर्ड गर्ने र वित्तीय लेनदेनको सारांश, विश्लेषण र नियमित अन्तराल समय अवधिमा वित्तीय लेनदेन रिपोर्ट गर्ने व्यवस्थित प्रक्रिया हो।)
The main purpose of accounting is to determine the profit and loss of the organization and communicate the result to the people who are directly or indirectly connected to the organization. ( लेखाको मुख्य उद्देश्य संस्थाको नाफा नोक्सान निर्धारण गर्ने र संस्थासँग प्रत्यक्ष वा अप्रत्यक्ष रूपमा आबद्ध व्यक्तिहरूलाई परिणाम सञ्चार गर्नु हो। )
Important / Objective and Advantage of Accounting
- To keep the systematic record
- To determine the profit and loss
- To determine the financial position of the business
- To communicate the result
- To help to determine the Tax amount
Function of Accounting
Recording, summarizing, analyzing and interpretation
Base for the Auditing
Preparation of trial balance
( रेकर्डिङ, संक्षेप, विश्लेषण र व्याख्या
लेखा परीक्षणको लागि आधार
परीक्षण ब्यालेन्सको तयारी )
Scope of Accounting
Trading concern ( Business )
Non Trading concern
For Government
For Professional and Individual
For Non Government Organization
Limitation of Accounting
- Numerical Errors
- Need highly skill and senior staff for accounting
- Depend upon Book keeping
- Possible of Manipulation
- Difficult to determine the intangible assets value of organization.
Accounting Error
The errors or mistake which are occurs at the time of recording, posting and summarizing the financial transaction it is called Accounting error.
Accounting Error are:
- Error of omission. It is the errors which is occurred by not recording the complete transaction in the books of account or recording only partial transaction.
- Error of commission:
- Error of principles. It is the error which is occur by not following the principles, guidelines, rules and regulations of accounting
- Compensating Error: It is a type of error which is occur when the 1 error has been compensated by another error.
Accounting Process or Cycle:
- Documentation (Occurring) of transactions
- Verification of the transactions
- Recording of the transactions
- Analyzing and summarizing the transactions
- Preparation of financial statements
- Reporting the financial statements
Principles of Accounting:
- Principles of Accounting period: This principles states that accounting should be done at the fixed internal period of time. In Nepal, Fiscal year start from Shrawan and end at Asar.
- Principles of Dual Effect : This principles states that every transactions must have the double effect, i.e effect on both debit and credit.
- Principles of Monetary Measurement: This principles states that only those transactions should be recorded in the books of accounts which can be measure in monetary value.
- Principles of cost: This principles states that the actual value of goods and product which are purchase should be recorded in the books of account, whatever be the market price of product.
- Principles of Matching Concept: This principles states that the same period of revenue and expenses of the business should be matched with each other and also determined the profit and loss of the business.
- Principles of Consistency ( Regularity ): This principles states that the accounting of the business should be done on the regularity bases.
- Principles of Going Concern Concept: This principles states that the accounting operation in the business should be continue till the indefinite future till the existence of business.
- Principles of Accrual Accounting: This principles states that the accounting system of the business should record the both cash and accrual (Outstanding) transactions in the books of account.
लेखाको सिद्धान्त: ( Principles of Accounting: )
1. लेखा अवधिको सिद्धान्तहरू: यस सिद्धान्तले लेखा निश्चित आन्तरिक अवधिमा गर्नुपर्छ भनी बताउँछ। नेपालमा आर्थिक वर्ष साउनदेखि सुरु भई असारमा समाप्त हुन्छ ।
2. दोहोरो प्रभावका सिद्धान्तहरू: यस सिद्धान्तले प्रत्येक लेनदेनको दोहोरो प्रभाव अर्थात् डेबिट र क्रेडिट दुवैमा प्रभाव पार्नु पर्छ भनी बताउँछ।
3. मौद्रिक मापनका सिद्धान्तहरू: यस सिद्धान्तले लेखाको पुस्तकमा केवल ती लेनदेनहरू रेकर्ड गर्नुपर्दछ जुन मौद्रिक मूल्यमा मापन गर्न सकिन्छ।
4. लागतको सिद्धान्तहरू: यस सिद्धान्तले खरिद गरेको वस्तु र उत्पादनको वास्तविक मूल्य वस्तुको बजार मूल्य जस्तोसुकै भए पनि लेखा पुस्तकमा रेकर्ड गर्नुपर्छ भनी बताउँछ।
5. मिलान अवधारणाको सिद्धान्तहरू: यस सिद्धान्तले व्यवसायको राजस्व र व्ययको एउटै अवधि एकअर्कासँग मिल्नुपर्छ र व्यापारको नाफा नोक्सान पनि निर्धारण गर्नुपर्छ भनी बताउँछ।
6. स्थिरताका सिद्धान्तहरू (नियमितता): यस सिद्धान्तले व्यवसायको लेखा नियमितता आधारमा गरिनुपर्छ भनी बताउँछ।
७. गोइंग कन्सर्न कन्सेप्टका सिद्धान्तहरू: यस सिद्धान्तले व्यवसायमा लेखा सञ्चालन अनिश्चितकालसम्म भविश्यसम्म चलिरहनुपर्छ भनी बताउँछ।
8. उपार्जन लेखाका सिद्धान्तहरू: यस सिद्धान्तले बताउँछ कि व्यवसायको लेखा प्रणालीले नगद र उपार्जन (बकाया) लेनदेनहरू खाताको किताबहरूमा रेकर्ड गर्नुपर्छ।
Difference Between Book Keeping & Accounting:
| Book Keeping | Accounting |
| Bookkeeping is the systematic process of recording the day-to-day financial activities and transactions of the business in the books of the account | Accounting is the systematic process of recording the financial transaction and summarizing the financial transaction, analyzing and reporting the financial transaction at the regular interval time period. |
| It is concerned with recording and classifying the business transactions. | It is concerned with recording, Summarizing, analyzing, & interpretation the Financial Transaction. |
| Book Keeping is done on the regular base, or daily base. | Accounting is done at the fixed interval time period. |
| For the book keeping basic knowledge is required. | For Accounting we must have the knowledge of accounting principles, process and experience also. |
| The main objective of Book keeping is to keep the permanent records of financial transactions. | The main objectives of accounting is to determine the financial position of organization by analyzing and summarizing the transactions. |
