Concept of Booking Keeping (In English and Nepali) Grade 11 Principles of Accounting

Concept and Meaning of Book-Keeping

Every businessman has a certain goal. s/he starts a business with a view to making a profit. Such business may earn profit or bear loss from business transactions. These transactions include purchases and sales of goods in cash and / or on credit, acquisition of assets, lending, borrowings and repayments of loans and capital, receipts and payments of various incomes and expenses etc. In this situation, to get the amount of profit or loss of a certain period, the businessman must remember all these transactions., which is impossible. So, all these day-to-day transactions are recorded in a set of books, which is called book-keeping.

Book-keeping is the combination of two words: Book + Keeping.

In accounting, Book means book of accounts in which business transactions are recorded. Keeping means recording of such transactions in a proper manner in the books of account. Therefore, book keeping is the process of collection and recording the financial transactions of a business in the book of account. These transactions are recorded systematic manner, so that information related to any transaction can be obtained easily. In book-keeping, there must be documentary evidence of every financial transaction which is recorded in the books of account. It is concerned with the recording of transactions which is often routine and clerical in nature. This makes easy for an owner to know the profit and loss and the financial positions of his business at any point of time.

Book-keeping may be defined as an art and science of making records of day-to-day financial transactions of a business in appropriate books of account. It is the recording of financial transactions of a business in a systematic manner so that information on any point in relation to them may be quickly obtained. The following definitions of renowned authors will also make its meaning clearer.

Definition of Book-keeping

"Book-keeping is the science and art of correctly recording in the books of account, all those business transactions that result in transfer of money or money's worth."   - R.N. Carter

"Book-keeping is the art of recording business transactions in a systematic manner."   - A.H. Rosenkampft

"Book-keeping is the art of recording business dealings in a set of books."   - J.R. Battliboi

"Book-keeping is the science and art of recording transactions in money or money's worth so accurately and systematically that the true state of a businessman's affairs can be correctly ascertained."   - A.N. Agrawal

"Book-keeping may be defined as the science of recording transactions in money or money's worth in a such a manner that, at any subsequent date, their nature and effect may be clearly understood and that, when required, a combined statement of their result may be prepared."   - L.C. Cropper

From the above definitions, it is clear that book-keeping is concerned with the recording of business transactions in a systematic and scientific manner. It is concerned only with recording of financial transactions not with the interpretation of the results of the financial transactions. It is a recording phase of accounting and involves journalizing of business transactions. The job of Book-keeping is performed by a book-keeper or clerk. Nowadays, this job is usually done with the help of accounting machines and computers.

Origin and Evolution of Book-keeping

Book-keeping is an old and time-honoured discipline or subject. Its exact date origin is not known. Some people say that it was in practice even before the numbers were invented. But, history says that it is as old as human civilization.

Book-keeping is an accounting sense is thought to have begun about 400 B.C. in India, Chanakya had also emphasized the existence and need of proper accounting and auditing in his 'Arthasastra'. But the modern system of Book-keeping was born only in 1494 A.D. In that year, a French monk and a lecturer of mathematics, Luca De Pacioli published a book Summa de Arithmetica, Geometric, Proportion et Proportionalite (Everything about Arithmetic, Geometry and Proportionate) in Venice, Italy. This book was primarily a book on mathematics, which dealt with Arithmetic, Geometry and Proportion. But the Part I and Section 9 of book contained a chapter titled Particularis de Computis et Scripturis (A section on Accounts and Records) on which the principles of double entry book-keeping were started. By stating the principles of double entry book-keeping, this book laid foundation of the modern double entry system of book-keeping. Later on that section containing Particularis de Computis et Scripturis was translated and published in English by Hugh Old castle in 1543 A.D., which popularized double entry book-keeping system all over the world. A decade later, James Pule published his work on how to keep a perfect account of debtors and creditors. Thereafter, a number of works were published, out of them the most important was by Edward Jones in 1795. He introduced the format of journal with two columns.

In early days, the methods of keeping records of financial transactions were very simple, because of small business houses and their few and limited transactions. But after the Industrial Revolution in England and most of the European countries in 18th century, business houses grew large and complex with a large number of transactions, which led to further improvements in book-keeping particularly in England and other Europeans countries.

In the 20th century also, many improvements were made in book-keeping particularly in England and U.S.A. Nowadays, double entry book-keeping system is highly developed and has been established as a popular, systematic and scientific system of recording the financial transactions. Due to his contribution, Luca De Pacioli is called as "The father of Modern Book-keeping."

Objectives of Book-Keeping

Following are the main objectives of book-keeping:

a. To identify financial transactions: It is well known that various financial and non-financial activities are performed during the course of business operations. Book-keeping identifies the transactions of financial character and keeps their records systematically.

b. To keep systematic records. Book-keeping records the identified financial transactions in the books of prime entry regularly and systematically as and when they occur. Similarly, it keeps a permanent record of all the transactions of a business for future reference.

c. To classify the transactions: Book-keeping not only records all the identified transactions but it also classifies them into personal, real and nominal accounts as per their nature.

d. To help in determination of operational result:   The main aim of establishing the business is to make a profit. So, the important function of book keeping is to determine the operating result. 

बहीखाताको अवधारणा र अर्थ  

प्रत्येक व्यापारीको निश्चित लक्ष्य रहेको हुन्छ । उसले व्यवसाय शुरु गरेर नाफा आर्जन गर्दछ । व्यवसायमा आर्थिक कारोबारहरु हुन्छन् । ती आर्थिक कारोबारहरुबाट व्यवसायमा नाफा वा नोक्सानी भने हुन्छ । आर्थिक कारोबारअन्तर्गत सामानहरु खरिद, बिक्री उधारो वा नगदमा, सम्पत्तिको प्राप्ति, ऋण लिनेदिने, आम्दानी आर्जन गर्ने, ऋण र पूँजीको भुक्तानी, खर्चको भुक्तानी आदि पर्दछन् । यी सबै कारोबार सम्झिने गाह्रो हुन्छ । त्यसैले एउटा प्रणालीगत र क्रमबद्ध ढंगले व्यवसायका कारोबारका अभिलेख राख्नु अति आवश्यक छ । अतएव, यस्ता कारोबारहरुले व्यवस्थित र वैज्ञानिक ढंगले अभिलेख राख्ने कलालाई बहि खाता भनिन्छ । 

बहिखाता लेखाकंनमा दुई शब्द मिलेर बनेको छ । बहिखाताले व्यावसायिक कारोबारको अभिलेख राख्ने खातालाई जनाउँछ । लेखाकंनले व्यावसायमा भएका आर्थिक कारोबारहरुलाई उचित तरिकाले राख्नु कलालाई जनाउँछ । आर्थिक कारोबारहरुको व्यवस्थित, क्रमबद्ध र वैज्ञानिक तरिकाले लेखा राख्नु पर्छ जसले गर्दा व्यवसायको सही अवस्थाको जानकारी प्राप्त गर्न सहयोग पुग्दछ । 

“व्यवसायको ती कारोबारहरु जुन मुद्रा वा मुद्राको मूल्यमा परिवर्तन हुने कारोबारहरुको खातामा शुद्धसँग राख्ने कला र विज्ञानलाई बहिखाता भनिएको हो । ” ( च्।ल्। ऋबचतभच 

“व्यवसायिक कारोबारहरुको क्रमबद्ध तरिकाले अभिलेख राख्ने कला नै बहिखाता हो । ” ( व्।च्। द्यबतष्दियष् 

“मुद्रा वा मुद्राको मूल्यमा परिवर्तन हुने कारोबारहरुको अभिलेख राख्ने कला र विज्ञानलाई बहिखाता भनिन्छ ।  ” 

बहिखाताको उत्पत्ति र क्रमविकास

बहिखाता एउटा पुरानो र समयसापेक्ष विषय हो । यसको उत्पत्ति कहिले भयो भनेर भन्न नसकिएतापनि सङ्ख्याको उत्पत्ति सँगसँगै यसको विकास र उत्पत्ति भएको थियो । 

बहिखाता लेखाकंन शास्त्रमा भारतमा ४०० बि.सी. तिर शुरुको भएको मानिन्छ । चाणक्यले अर्थशास्त्रमा लेखा परीक्षण र उचित लेखाको बारेमा उल्लेख गरेको पाइन्छ । तर आधुनिक लेखाशास्त्रको उत्पत्ति भने सन् १४९४ मा भएको थियो । एकजना फ्रेञ्च भिक्षु, गणितका प्रोफेसर, लुका द प्यासिओलिले समा द अर्थमेटिका, ज्योमेट्रिका, प्रोपोर्शनेट ए प्रोपोरशिनालिते भन्ने पुस्तकबाट शुरु भएको हो । यसले दुई पक्षको बहिखाताको रुपमा विश्वमा परिचित भयो । यसले दोहोरो प्रविष्टिको लेखा राख्नु पर्छ भनेर स्पष्ट रुपमा किटान ग¥यो । 

विगतका व्यावसायिक कारोबारहरुको अभिलेख राख्नु ज्यादै सरल थियो । त्यतिबेला व्यावसायिक कारोबारहरु सीमित र थोरै मात्रामा हुन्थे । तर बेलायतको औद्योगिक क्रान्तिको परिणामस्वरुप बृहत्रुपमा वस्तुहरुको उत्पादन हुन थाल्यो र कारोबारहरु पनि बढ्दै गए । व्यावसायिक कारोबारहरुको व्यवस्थित र क्रमबद्धतरिकाले राख्नु पर्ने आवश्यकता प¥यो । कारोबारहरुमा देखिएको जटिलता, धेरै लेनदेनका कारणले बेलायत लगायत युरोपियन देशहरुमा बिशेषगरेर बहिखाताको उत्पत्ति भयो । 

बहिखाताको उद्देश्य 

बहिखाताको उद्देश्यहरु निम्नलिखित छन् ः 

क) आर्थिक कारोबारहरुको पहिचान गर्नु ः व्यवसायमा आर्थिक एवं गैरआर्थिक कारोबारहरु हुन्छन् । बहिखाताले आर्थिक कारोबारहरुलाई पहिचान गरी क्रमबद्धतरिकाले अभिलेख राख्दछ । 

ख) उचित तरिकाले लेखा राख्नु ः बहिखातले आर्थिक कारोबारहरु व्यवसायबाट पहिचान गर्दछ । ती आर्थिक कारोबारहरुलाई स्थायीरुपमा अभिलेख राख्न बहिखाताले सहयोग पु¥याउँछ । 

ग) कारोबारहरुको वर्गीकरण गर्नु ः बहिखाताले आर्थिक कारोबाहरुको मात्र पहिचान गर्दैन यसले ती कारोबारहरु कुन खाता अन्तर्गत पर्दछ भनेर पनि वर्गीकरण गर्ने गर्दछ । यसले ती कारोबारहरुलाई व्यक्तिगत, वास्तविक र नाममात्रको खातामा वर्गीकरण गरी अभिलेख राख्दछ । 

घ) व्यावसायिक सञ्चालनबाट प्राप्त हुने परिणामको जानकारी दिन सहयोग पु¥याउनु ः  व्यवसाय स्थापन गर्नुको प्रमुख उद्देश्य भनेको नाफा कमाउनु हो । त्यसैले बहिखाताको मुख्य कार्य व्यवसायको क्रियाकलापहरुबाट प्राप्त भएको नतिजा पत्ता लगाउनु हो अर्थात् व्यवसायको नाफा वा नोक्सानको परिणाम पत्ता लगाउनु हो ।