{"id":1877,"date":"2019-07-15T09:04:08","date_gmt":"2019-07-15T09:04:08","guid":{"rendered":"https:\/\/commerceiets.com\/?p=1877"},"modified":"2019-07-15T09:04:08","modified_gmt":"2019-07-15T09:04:08","slug":"difference-between-accounting-and-accountancy","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/difference-between-accounting-and-accountancy\/","title":{"rendered":"DIFFERENCE BETWEEN ACCOUNTING AND ACCOUNTANCY"},"content":{"rendered":"\n

DIFFERENCE BETWEEN ACCOUNTING AND ACCOUNTANCY<\/h1>\n\n\n\n

To understand the Difference Between Accounting and Accountancy, these both terms should be understood:<\/p>\n\n\n\n

Accounting<\/a> refers to the mechanism of maintaining and keeping the records of the transactions and events and also its analysis and interpretation. It also includes the preparation of final accounts i.e. Trading and Profit and Loss Account and Balance Sheet at the end of the financial year. It is associated with communicating the interpreted results of the financial information to its users.<\/p>\n\n\n\n

ACCORDING TO AICPA (American Institute of Certified Public Accountants)<\/strong><\/p>\n\n\n\n

\u201cAccounting\nis art of recording, classifying, summarizing in a significant manner and in\nterms of money, transactions and events which are, in part at least, of\nfinancial character and interpreting the results thereof.\u201d<\/p>\n\n\n\n

Accounting\nis a system which involves the identification of transactions and events which\nare financial in nature; ensuring measurement of transactions in the monetary\nterms; recording the transactions in the journal; classifying the entries in\nledger, summarizing the entries in final accounts i.e. Trading Account and\nProfit and Loss Account and Balance Sheet; analyzing and interpreting the\nresults and communicating the results to the users of the accounting\ninformation.<\/p>\n\n\n\n

Accountancy<\/a><\/strong> refers to systematic knowledge of accounting concerned with the principles and techniques which are applied in accounting. It tells us how to prepare the books of accounts, how to summarize the accounting information and how to communicate it to the interested users.<\/p>\n\n\n\n

ACCORDING TO KOHLER<\/strong><\/p>\n\n\n\n

\u201cAccountancy refers to the entire body of theory and\npractice of accounting.\u201d<\/p>\n\n\n\n

Accountancy is wider in scope than book-keeping and\naccounting. It is a body that consists of the guiding principles and rules of\nbook-keeping and accounting.<\/p>\n\n\n\n

BASIS OF DIFFERENCE <\/strong><\/td> ACCOUNTING <\/strong><\/td> ACCOUNTANCY <\/strong><\/td><\/tr>
MEANING <\/strong><\/td>\n It is concerned\n with recording, classifying and summarizing of transactions.\n <\/td>\n It is a body of\n knowledge prescribing certain rules or principles to be observed while\n recording, classifying and summarizing of transactions.\n <\/td><\/tr>
SCOPE <\/strong><\/td>\n It is narrower\n in scope than accountancy but wider than book-keeping.\n <\/td>\n It is wider in\n scope than accounting. And book-keeping both.\n <\/td><\/tr>
RELATION <\/strong><\/td>\n It depends on\n book-keeping.\n <\/td>\n It depends on\n both book-keeping and accounting.\n <\/td><\/tr>
FUNCTION <\/strong><\/td>\n Its main\n function is to ascertain the net results and financial position of the\n business and to communicate them to interested parties.\n <\/td>\n It includes the\n decision making function also on the basis of information provided by\n book-keeping and accounting.\n <\/td><\/tr>
MAIN TOOLS <\/strong><\/td>\n The main tools\n are Profit and Loss Account and Balance Sheet.\n <\/td>\n The main tools\n are Concepts, Conventions, Rules etc.\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Also Study<\/strong><\/td>Also Study<\/strong><\/td>Also Study<\/strong><\/td>Also Study<\/strong><\/td><\/tr>
Accounting<\/strong><\/a><\/td>Non profit organisation<\/strong><\/a><\/td>Depreciation<\/strong><\/a><\/td>Liquidity ratios<\/strong><\/a><\/td><\/tr>
Nature of Accounting<\/strong><\/a><\/td>Receipts and Payments Account<\/strong><\/a><\/td>Depreciation Accounting<\/strong><\/a><\/td>Acid Test Ratio<\/strong><\/a><\/td><\/tr>
Benefits of Accounting<\/strong><\/a><\/td>Scope of accounting<\/strong><\/a><\/td>Hire Purchase Accounting<\/strong><\/a><\/td>Cash Ratio<\/strong><\/a><\/td><\/tr>
Difference between cost accounting and financial accounting<\/strong><\/a><\/td>Financial accounting, cost accounting and management accounting<\/strong><\/a><\/td>Difference between hire purchase and instalment system<\/strong><\/a><\/td>Financial ratio analysis<\/strong><\/a><\/td><\/tr>
Difference between transaction and event<\/strong><\/a><\/td>Transactions<\/strong><\/a><\/td>Users of Accounting<\/strong><\/a><\/td>Ratio analysis<\/strong><\/a><\/td><\/tr>
Limitation of Accounting<\/strong><\/a><\/td>Capital Expenditure<\/strong><\/a><\/td>Instalment System<\/strong><\/a><\/td>Difference between consignment and sale<\/strong><\/a><\/td><\/tr>
Book Keeping<\/strong><\/a><\/td>Revenue Expenditure<\/strong><\/a><\/td>Reserves Accounting<\/strong><\/a><\/td>Abnormal loss vs normal loss in consignment<\/strong><\/a><\/td><\/tr>
Accountancy<\/strong><\/a><\/td>Difference between capital and revenue expenditure<\/strong><\/a><\/td>Provisions <\/strong><\/a><\/td>Treatment of loss on consignment<\/strong><\/a><\/td><\/tr>
Accounting as science or an art<\/strong><\/a><\/td>Accounting Equation<\/strong><\/a><\/td>Single entry system<\/strong><\/a><\/td>Accounting treatment of consignment<\/strong><\/a><\/td><\/tr>
Book Keeping vs accounting<\/strong><\/a><\/td>Deferred Revenue Expenditure<\/strong><\/a><\/td>Difference between statement of affairs and balance sheet<\/strong><\/a><\/td>Joint venture vs consignment<\/strong><\/a><\/td><\/tr>
Book keeping vs accountancy<\/strong><\/a><\/td>Capital receipt<\/strong><\/a><\/td>IFRS<\/strong><\/a><\/td>Departmental Accounting<\/strong><\/a><\/td><\/tr>
Accounting vs accountancy<\/strong><\/a><\/td>Revenue receipt<\/strong><\/a><\/td>Balance Sheet<\/strong><\/a><\/td>Methods of departmental accounting<\/strong><\/a><\/td><\/tr>
Basis of Accounting<\/strong><\/a><\/td>Difference between capital and revenue receipt<\/strong><\/a><\/td>Profit and loss Account<\/strong><\/a><\/td>Allocation of expenses in departmental accounting<\/strong><\/a><\/td><\/tr>
Branches of accounting<\/strong><\/a><\/td>Difference between accounting concepts and conventions<\/strong><\/a><\/td>Trading Account<\/strong><\/a><\/td>Inter-departmental transfers<\/strong><\/a><\/td><\/tr>
Cash and mercantile system of accounting<\/strong><\/a><\/td>Accounting Standards<\/strong><\/a><\/td>Voyage Account<\/strong><\/a><\/td>Different types of branches<\/strong><\/a><\/td><\/tr>
Accounting Principles<\/strong><\/a><\/td>Objectives of Accounting<\/strong><\/a><\/td>Accounting for Incomplete Voyage<\/strong><\/a><\/td>Departmental vs Branch accounting<\/strong><\/a><\/td><\/tr>
Golden ru\nles of accounting<\/strong><\/a><\/td>Process of Accounting<\/strong><\/a><\/td>Joint venture<\/strong><\/a><\/td>Methods of branch accounting<\/strong><\/a><\/td><\/tr>
Double entry system of book keeping<\/strong><\/a><\/td>Scope of Accounting<\/strong><\/a><\/td>Joint Venture Vs Partnership<\/strong><\/a><\/td>Incorporation of branch trial balance<\/strong><\/a><\/td><\/tr>
Double entry vs Single entry system<\/strong><\/a><\/td>Accounting Concepts vs Accounting conventions<\/strong><\/a><\/td>Methods of recording transactions in Joint Venture<\/strong><\/a><\/td>Garner VS Murray Rule<\/strong><\/a><\/td><\/tr>
History of Accounting<\/strong><\/a><\/td>Difference between provisions and reserves<\/strong><\/a><\/td>Consignment<\/strong><\/a><\/td><\/td><\/tr>
<\/td><\/td><\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n
CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

DIFFERENCE BETWEEN ACCOUNTING AND ACCOUNTANCY To understand the Difference Between Accounting and Accountancy, these both terms should be understood: Accounting refers to the mechanism of maintaining and keeping the records of the transactions and events and also its analysis and interpretation. It also includes the preparation of final accounts i.e. Trading and Profit and Loss…<\/p>\n

Read More “DIFFERENCE BETWEEN ACCOUNTING AND ACCOUNTANCY”<\/span> »<\/a><\/p>\n","protected":false},"author":2,"featured_media":1879,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,11,56],"tags":[82,53],"class_list":["post-1877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-11-accountancy","category-financial-accounting","category-difference-between","tag-accountancy","tag-accounting"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=1877"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1877\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/1879"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=1877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=1877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=1877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}