Define book-keeping. Explain the advantages of the double-entry system and the books of accounts.
How to lay out the answer. Follow the frame, then write it in your own words.
1 · Open in two lines. Book-keeping is the systematic recording of business transactions in money terms. The double-entry system records both aspects of every transaction.
2 · Explain double entry. Dual aspect: one debit and one equal credit; golden rules for personal, real and nominal accounts; Pacioli (1494).
3 · Draw the chain of books. [Flow: transaction → journal → ledger → trial balance → final accounts (trading, profit and loss, balance sheet)]
4 · Advantages of double entry.
Complete record; accuracy by trial balance.
Profit or loss and financial position known.
Dues known; errors and fraud found; comparison; legal acceptance.
5 · Books of accounts. Journal, subsidiary books (cash, purchases, sales, returns), ledger, trial balance, final accounts.
6 · In a real kitchen. Stores ledger, requisitions and daily food cost reports tie the books to the kitchen.
7 · Close in one line. Accurate books are the base of every costing, pricing and control decision.
Scoring tip: Add a three-line journal example (purchase for cash, credit purchase, wages); it shows understanding at once.
