Meaning of Bookkeeping
Bookkeeping has been composed of two words which are Book and Keeping. The book means the record of all the financial transactions and keeping means to maintain the record systematically and correctly. Since, Bookkeeping is an act of recording financial transactions of the business in a systematic manner, preparing journals, positing in the ledger, and maintaining cashbook, subsidiary book, and trial balance are activities of bookkeeping.
Objectives of Bookkeeping
a. To keep systematic and permanent records of financial transactions
b. To help in determining the profit or loss during the year
c. To help in preparing the financial position of the Business.
Origin & Evaluation of Bookkeeping
Bookkeeping has been practiced since ancient times. Origin of bookkeeping can’t exactly trace out. Luca Pecioli, who lived in Italy, introduced Bookkeeping in 1494 A.D. He published a book named “Sama De Arithmatica” in the Italian language and he dealt with the use of memorandum books, journals & ledger. Therefore, he is regarded as the father of modern bookkeeping. Later on, James Paula improved the method of bookkeeping for the purpose of debtors and creditors.