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Book keeping and accounting are sometimes treated in the same format. However, accounting is superior o book keeping in a number of forms.

Book keeping involves taking the actual raw records. It is the recording of the basic financial transactions.

Book keeping is different to accounting in a number of ways as discussed in the following statements.  Book keeping records the basic transactions that take place in a business (Jeacle, 2012). For instance, if a business makes a sale of say $ 1000 the figure goes into the books as just sales $ 1000.

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However, accounting goes a bit deeper in that it can be able to explain the circumstances leading to the sale of $ 1000. For instance, the accounting concept will have to analyze and state the actual proceedings resulting into this sale. Say, sold 20 packets of Steel rolls for $50 each to get sales of $ 1000. Accounting would also go further and try to explain what this effect has on the stock, balance sheet as well as other accounting statements and records.

Accounting equation concept

Accounting equation tries to balance out the assets with the liabilities. In essence, this equation tries to provide the basic accounting mechanism to professional accountants by allowing them to be able to understand how a particular product affects this balance. The accounting professionals need to fully understand and analyze the accounting items and basics into different sides of the accounting equation, noted as assets and liabilities.


The two concepts discussed above, book keeping and accounting must coexist. Accounting utilizes the information that is derived from the records available from book keeping in its analysis. As such, it is hard to have a distinctive separation between the two terms.

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