Differentiate between Book-keeping and Accounting.

The difference between Book keeping and Accounting are as follows: S. No. Book-keeping Accounting 1. It is a process concerned with recording of transactions. It is a process concerned with summarising of the recorded transactions. 2. It constitutes as a base for accounting. It is considered as a language of the business. 3. Financial statements do not form part of this process. Financial statements are prepared in this process on the basis of book-keeping records. 4. Managerial decisions cannot be taken with the help of these records. Management takes decisions on the basis of these records. 5. There is no sub-field of book keeping. It has several sub-fields like financial accounting, management accounting etc. 6. Financial position of the business cannot be ascertained through book-keeping records. Financial position of the business is ascertained on the basis of the accounting reports.