ECONOMICS

Detailed explanation-1: -Book-keeping is an art and science of recording business transactions in the appropriate books of accounts in accordance with the principles of accountancy for the purpose of ascertaining the profits or losses and the financial position of the business.

Detailed explanation-2: -Recording of transaction-I is a process of accounting transactions of the business in several books of accounts like cash book, journal book, a ledger account, profit & loss account, etc. These entries are a source of documents which act as evidence for all the transactions taking place in the company.

Detailed explanation-3: -Business transactions are ordinarily summarized in books called journals and ledgers. You can buy them at your local stationery or office supply store. A journal is a book where you record each business transaction shown on your supporting documents.

Detailed explanation-4: -Journal Entries The most basic method used to record a transaction is the journal entry, where the accountant manually enters the account numbers and debits and credits for each individual transaction. This approach is time-consuming and subject to error, and so is usually reserved for adjustments and special entries.

Detailed explanation-5: -Financial accounting may be performed under the accrual method (recording expenses for items that have not yet been paid) or under the cash method (only cash transactions are recorded).