SUBJECT MATTER OF BOOKEEPING

1. Definition of Book-Keeping
Book – keeping is an art of recording business transactions in the books of accounts in terms of money or money’s worth.
OR Is an art of recording business transaction in books of accounts by using a double entry.
System in terms of money or money worth.
2. TYPES OF TRANSACTIONS
(a) Transaction is the transfer or movement of money or money worth forms one person to another person
(b) Transaction are the movements of money or money worth from one person to another which must be recorded in the books of accounts
There are two (2) major types of transactions; which are cash transaction and credit transaction.
(i) Cash transaction: Is the transfer of money or money worth (goods or services) whereby payment is done on a spot.
(ii) Credit transaction: Is the transfer of money or money worth (good or service) whereby payment is done later.
(iii) Combined transactions: Is the transfer of money or money worth (good services) when done partially cash and partially credit.
(c) Double entry system (book-keeping principle).