Introduction To Book-Keeping

PREVIOUS KNOWLEDGE: The students have learnt about meaning of business studies.

MAIN AIM: to help the students understand the meaning of book-keeping.

SUBSIDIARY AIMS: By the end of the lesson, the Students should be able to:

1. State the meaning of book-keeping

2. Explain the importance of book-keeping

3. Identify qualities of a book-keeper

PERSONAL AIM: to assist the students understand the importance of book-keeping.

ASSUMPTION: the students are familiar with book-keeping as a component of business environment.

ANTICIPATED PROBLEMS: the student may not be conversant with the meaning book-keeping as an act of recording financial transaction.

POSSIBLE SOLUTION: Teacher explains the meaning book-keeping.

TEACHING AIDS:  Junior Secondary Business Studies (WABP).

INTERACTION PATTERN: individual

STEP1: MEANING OF BOOK-KEEPING:

It can be defined as the system of recording transaction in business on a daily basis in appropriate book, it is an integral part of account.

MEANING OF ACCOUNTING

It can be defined as the process of recording, selecting, classifying, interpreting and communicating financial data of an organization to enable users to make decision. Accounting involves measurement and reporting of organization profit and loss.

DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTING

While bookkeeping involve only the recording of transaction on daily basis in the appropriate book, accounting is concern with the analysis and interpretation.

In other word accounting involve the application of professional competency and skills in presenting accounting information to assist the management decision making.

STEP2: IMPORTANCE OF ACCOUNTING AND BOOK-KEEPING

1. The record shows income and expenditure

2. The record provides a means by which the finance of business are controlled

3. It helps to prevent fraudulent practices

4. It helps to determine the profitability of business concern

5. They are used for tax assessment

6. It provide permanent record for all transaction

7. It can be use for decision making

8. The record also shown the asset and liability of the business.

USERS OF ACCOUNTING INFORMATION

Principal uses of accounting information are;

1. Managers’

2. Employee

3. The public

4. Investors

5. Government

6. Directors

7. Analyst

Limitation to Accounting Information

1. There is no information as to usefulness, size or quantity because accounting is expressed in monetary terms

2. Accounting information is historical in nature i.e. recording is after the event

Benefits of book keeping and Accounting

The following are the benefit of book keeping and Accounting

It shows purchases and sales made within a given period

It provides a written record which is essential for the proper conduct of business

Good book keeping practices enables one to ascertain the profit or loss made during a trading period

The existence of reliable financial records helps in management decision -making

It facilitates reference making to past transaction.

QUALITIES OF A BOOK-KEEPER ARE:

1. Excellent communication skills

2. Ability to adapt to accounting software and new technologies

3. Experienced in your particular industry

4 .organization and team work

5. Integrity

6. Relationship building skill

7. Flexibility to adapt in different working styles.

EVALUATION:

1. State the meaning of book-keeping

2. Explain the importance of book-keeping

3. Identify qualities of a book-keeper

SUMMARY:

DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTING

While bookkeeping involve only the recording of transaction on daily basis in the appropriate book, accounting is concern with the analysis and interpretation.

In other word accounting involve the application of professional competency and skills in presenting accounting information to assist the management decision making.

ASSIGNMENT:

1. Define book-keeping

2. Give the benefits of book keeping and accounting

3. State the differences between book keeping and accounting

Teacher Evaluation: ­­­­_______________________

Conclusion