Difference between Accounting & Book-

keeping, Double entry system

Session No.: 3
Course Name : Accounting for Managers
Course Code: D1PK102T
Instructor Name: Dr. Jaideep Sharma
Duration: 5o Minutes

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 At the end of this session students will be able to

Learning Outcome 1 :. Differentiate

between accounting and
bookkeeping in terms of scope,
functions, and objectives.

Learning Outcome 2: Apply the

double-entry concept to record
basic business transactions.
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 Session Outline
1. Introduction to Bookkeeping
2. Difference between Accounting and Bookkeeping
3. Practical Application in Financial Reporting
4. Classroom Activity

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 Galgotias University

"Have you ever recorded a financial transaction for a business or at home?"

Scan below Code and answer
4
 Meaning and Definition of Bookkeeping

What is Bookkeeping?
Bookkeeping is the process of systematic recording and classification of financial
transactions of an organisation.
Bookkeeping is said to be the basis of accounting, whereas accounting forms a part of
the broader scope in finance.
Bookkeeping process consists of the following steps:
1. Identifying a financial transaction
2. Recording a financial transaction
3. Preparing a ledger account
4. Preparing trial balance
 Difference between Accounting and Bookkeeping
Bookkeeping Accounting
Definition
Bookkeeping deals with identifying and Accounting refers to the process of summarising,
recording financial transactions only interpreting and communicating the financial data of
an organisation.
Decision making
Data provided by bookkeeping is not Management can take important decisions based on
sufficient for decision making the data obtained from accounting
Preparation of Financial Statement
Not done in the case of bookkeeping Financial statements are a part of the accounting
process
Analysis
No analysis is required in the bookkeeping Accounting analyses the data and creates insights for
the business
Persons Involved
 USERS OF ACCOUNTING INFORMATION

INTERNAL USERS EXTERNAL

(PRIMARY USERS) USERS( SECONDARY
USERS)
OWNERS INVESTORS

MANAGERS LENDERS

EMPLOYEES SUPPLIERS

CUSTOMERS

TAX AUTHOROTIES

GOVERNMENT

AUDITOR

PUBLIC
 8
Activity – Role Play
 Key takeaway/Reflections
Students will share their learning through a Wooclap Open Question: "What
is main difference between Bookkeeping and Accounting?

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Ensure attainment of LOs in
alignment to the learning
activities: outcomes (1-2)

Outcome 1: Students learned

meaning of Bookkeeping.

Outcome 2: Students Applied

Apply the double-entry
concept to record basic
business transactions..
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 Next Class Topics
classification of accounts, rules for debit &
credit

Visit LMS and go through Pre reading

Material and attempt Quiz before Next class.

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