n.
Recording of the money values of business transactions.
Bookkeeping provides the information from which accounts are prepared but is distinct from accounting . Bookkeeping offers information on both the current value, or equity , of an enterprise and on its change in value (due to profit or loss) over a given time period. Managers require such information to examine the results of operations and budget for the future; investors need it to make decisions about buying or selling securities; and credit grantors use it to determine whether to grant a loan. Financial records were kept in Babylon and in ancient Greece and Rome. The double-entry method of bookkeeping began with the development of the Italian commercial republics of the 15th century. The Industrial Revolution stimulated the spread of bookkeeping, and 20th-century taxation and government regulations made it a necessity. Two types of records continue to be used in bookkeeping
journals and ledgers. They can be recorded by hand or entered into a computer. The journal contains daily transactions (sales, purchases, etc.), while the ledger contains the record of individual accounts. Each month an income statement and a balance sheet are posted in the ledger.