Accountancy, Accounting and Book-keeping
Accountancy refers to a methodical knowledge of accounting. It explains “why to do” and “how to do” of different features of accounting. It is the theory or observe of keeping financial accounts. It tells us why and how to prepare the books of accounts and how to summarize the accounting information and communicate it to the interested parties.
Accounting refers to the real procedure of preparing and presenting the accounts. It is the action or procedure of keeping financial accounts. In other words, it is the art of putting the academic knowledge of accountancy into practice.
Book-keeping is a division of accounting and is apprehensive with record keeping or preservation of books of accounts. It is the activity or occupation of keeping records of the financial affairs of a business. It is habitually routine and clerical in nature.
Book-keeping provides the foundation for accounting and it is balancing to accounting procedure. Accounting begins where book-keeping ends. Accountancy includes accounting and book-keeping. The terms Accounting and Accountancy are used synonymously.
