Need for Book-keeping
"Profit to a business is like food to human body." {W.C.F Harley}. Just as food is very essential for the development of human body, profit is very essential for the development of a business. That is why, every businessman starts business to earn profits. He earns profits through the transactions of his business, such as purchases of goods, sales of goods, receipt of iincomes etc. So, if he wants to know the profits of his business for a certain year, he must remember all the transactions of his business for the year. But the transactions of a modern business are so many that it is not possible for any businessman to remember all the transactions of his business for the year, however good his memory may be. So, every businessman is forced to record his business transactions in a set of account books called books of accounts. Thus , the inability of every businessman to remember all the transactions of his business has given rise to Book-Keeping.
"Profit to a business is like food to human body." {W.C.F Harley}. Just as food is very essential for the development of human body, profit is very essential for the development of a business. That is why, every businessman starts business to earn profits. He earns profits through the transactions of his business, such as purchases of goods, sales of goods, receipt of iincomes etc. So, if he wants to know the profits of his business for a certain year, he must remember all the transactions of his business for the year. But the transactions of a modern business are so many that it is not possible for any businessman to remember all the transactions of his business for the year, however good his memory may be. So, every businessman is forced to record his business transactions in a set of account books called books of accounts. Thus , the inability of every businessman to remember all the transactions of his business has given rise to Book-Keeping.
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