Working of Book-Keeping Process:
Under the double-entry system of book-keeping, the process of book-keeping can be carried out in any one of the two ways, depending upon the size of the business and the volume of transactions undertaken by the business. Those two ways are:
1. Conventional method, traditional method or theoretical method of book-keeping.
2. Modern method, practical method or English method of book-keeping.
In the beginning, only the traditional or theoretical method of book-keeping was available to all concerns, small as well as big. But later on, the practical method of book-keeping was developed. So, today, both the theoretical and practical methods of book-keeping are available. The theoretical method of book-keeping is followed by small concerns, which have relatively less volume of transactions. Big concerns, which have a large volume of transactions, find the theoretical method quite inconvenient, and so, they follow the practical method of book-keeping.
Under the double-entry system of book-keeping, the process of book-keeping can be carried out in any one of the two ways, depending upon the size of the business and the volume of transactions undertaken by the business. Those two ways are:
1. Conventional method, traditional method or theoretical method of book-keeping.
2. Modern method, practical method or English method of book-keeping.
In the beginning, only the traditional or theoretical method of book-keeping was available to all concerns, small as well as big. But later on, the practical method of book-keeping was developed. So, today, both the theoretical and practical methods of book-keeping are available. The theoretical method of book-keeping is followed by small concerns, which have relatively less volume of transactions. Big concerns, which have a large volume of transactions, find the theoretical method quite inconvenient, and so, they follow the practical method of book-keeping.
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