Book-keeping is a process of recording business transactions in the books of accounts in a very systematic manner.All the transactions are recorded date wise.
     In India this system of book-keeping was in Operation from 23rd centuries ago at the time of Chandragupta Maurya. Chanakya was recording the accounting transactions. He wrote a famous book known as "Arthashastra.

    The double entry system of book-keeping was originated in Italy, developed by Luca De Berge Pacioli in the year 1994. Book-keeping is and Art of recording day-to-day business transactions in the book of account in a systematic manner.

Definition of Book-keeping 

1) J. R. Batliboi:  Book-keeping is an art of recording business dealing in a set of books".

2) R.N. Carter: "book-keeping is the science and art of correctly recording in the books of accounts, all those businesses transactions that results in transfer of money's worth."

3) Spicer & Pegler : Book-keeping is the systematic recording of the transactions in a manner enabling the financial relationship of a business with other persons to be clearly disclosed and the cumulative effect of the transactions on the financial position of the business itself can be correctly ascertained."

4) Richard E. Strahelm: “The art of analyzing and recording business transactions, reporting result of business operations through periodic statements and integrating such result for purposes of effective control of future operations."

5) Notch Cott - “Book-keeping is an art of recording in the books of accounts the monetary aspects of commercial or financial transaction."

Meaning and definition of Accountancy - 

                                             Accountancy is a wider concept than Book-keeping. Book-keeping is the recording branch of accountancy. Accountancy includes Book-keeping and classifying, summarizing and interpreting of the business transactions. It makes easy to take decisions relating to business. Accountancy starts where book-keeping ends.

Definitions - 
Here are some definitions of accountancy, are as follows: 

1) According to Kohler: "Accountancy refers to the entire body of the theory and process of accounting."

2) "An act of recording, classifying and summarizing the business transactions, balancing of accounts, drawing conclusions and integrating the results thereof."

3) Professor Robert N. Anthony has defined Accounting as "nearly every business enterprise has an accounting system. It is a means of collecting, summarizing, analyzing and reporting in monetary terms information about the business transactions."

Relation of accounting to law -

                                 Law is related to both Civil and criminal crimes. Mostly the crimes are related to the property and money of Industrial and Commerce sectors. Many laws are made relating to the trade and industry. They are mostly presented in accounts.  Law of this sectors are Indian companies Act, the hire purchase act, The sale of goods Act, The Partnership Act, The Indian Contract Act, The Indian banking Act, The insolvency Act, Negotiable Instruments Act, The Income Tax Act, The sales tax Act, The wealth tax Act, Wages Act, and gratuity and Bonus Act, all this Acts are related with the matter of money dealing and the money dealings have their accounting system. Besides these Acts, there are Acts relating to international trade Related  Acts such as the Copyright Act, 9757, The trademark Act,1999. The Geographical Indications of Goods (Registration and Protection) Act, 1999. Designs Act 2000.The Patent Act, 1970 Semiconductor integrated circuits layout-design Act 2000. Biological diversity Act, The protection of plant varieties and farmers rights Act, to understand and deal with this entire Acts one should have the primary knowledge of finance and accounting.

Utilities for Advocates:

                           Advocacy is a profession but now it has been nearly commercialized and it has now become a trade through restricted by certain rules imposed upon an Advocate by All India Bar Council and State bar councils which check it from being turned completely into a business or trade. Accounts are maintained in suitable form by businessmen in order that their nature and affect maybe elaborately scrutinized. A good system of book-keeping is for supply comfortably the greatest amount of necessary information relating to the business or profession. The nature of such information depends upon the quality and the size of the business. It may be of a single /Individual or a Partnership firm or a Corporation .Advocates a generally conduct their profession singly and rarely in firms of partnerships.

The General information required as to a business or profession is about -

1) The particulars of money, goods and services received or rendered.

2) The amount of profit or loss made in the business or profession; and

3) The state of its assets and liabilities.

                         For long there has been no legal obligation on Businessman of the ordinary class to keep their account books and that laid to great difficulties to Income Tax Department assess their income and impose recover income tax from those who are liable to pay it. However, it is essential for every Businessman to keep regular account which has certain evidentiary value also under the Indian Evidence Act, 1972.
            A businessman or a professional cannot remember each and every transaction  without keeping account books regularly, he cannot also claim or recover any amount even though due from the other customer, Client or businessman. If satisfactory accounts are kept, the Businessman or professional may expect a fair and humanitarian response from the income-tax authorities. Now certain person's are obliged to submit their accounts annually showing profits, loss, capital gains, etc. submitting a balance sheet or their accounts while filling the prescribed form of income tax return.

            A businessman if fails in his business or profession and has to take the shelter of and insolvency Court, his regular keeping of accounts will help him to show and prove his insolvency. If in a partnership firm, some disputes arise between them, then their accountants dealt with fairly may easily solve the dispute mutually and save them from unnecessary harassment in Courts.

From the point of view it is very essential to keep and maintain account book by advocate


  1. Very helpful and Great information,
    I appreciate advice especially coming from a professional.
    And you included some great points regarding accounting system & bookkeeping to the equally great article.


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