Accountancy XI Content
Objectives or functions of book keeping
Business firm performs various financial and non-financial transactions during the course of business operation. Book keeping helps in identifying the financial transaction in order to keep their records.
2. To keep permanent record
Book keeping keeps the permanent records of financial transactions that take place in the business during an accounting period in a systematic manner.
3. To classify transactions
Book keeping records all the identified transactions in journal entries simultaneously it classifies them into personal account, real account and nominal account through ledger.
4. To prepare statement
The motive of establishing the business organization is to earn profit. Thus, the main objective of book keeping is to find out the result i.e. Profit and Loss.