Objects of Book-Keeping

Objects of Book-Keeping :

The objects of Book-Keeping are :

1. To have a permanent record of all the transactions of a business for future reference.

2. To ascertain the net result (i.e. the net profit or the net loss) of the business for any particular year.

3. To know the exact reasons (i.e. the expenses or losses, and incomes and gains) leading to the net profit or the net loss.

4. To ascertain what amounts are due to the business and from whom the amounts are due.

5. To ascertain what amounts are due from the business and to whom the amounts are due.

6. To know the exact financial position of the business (i.e. the assets, the liabilities and the capital in the business) as on a particular date.

7. To know the progress of the business from year to year.

8. To minimise errors and frauds by facilitating their quick detection.

9. To keep control over the properties and the activities of the business.

10. To have valuable information for legal and tax purposes.

11. To have necessary information for future planning.