CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
DEFINITION, NATURE OF BOOK-KEEP AND ACCOUNTING
Book-keeping may simply be defined as an art of recording all money transactions of an organisation so that its relationship to both its proprietor and outsider can readily be ascertained for a particular point in time. Book-keeping cannot be easily differentiated from accounting in general. The book-keeper writer up books and keeps accounting records in a system designed by the accountant whereas the amount ant controls the book-keeping system and ares information produced to prepare financial statement and advice management and other users of financial information. Accounting can be defined in various ways depending on the objectives which the writer wants to achieve for the purpose of this study, accounting can be defined as a process of collecting, analyzing interpreting and summarizing of information or date relating to an organization in such a way that decision guide is made easy. It can also be defined according to the nature of the activities involved in an organization either descriptive or analytics information obtained from the activities involved. An on information system it collects and communicate economic information about business and organization whose actions and decision are related to the activities being communicated. Accounting may be summarized as a machine behind the writing of an economic history and plan of an or both qualitative and financial in manner so that facts can be realized for decision making for internal and external papooses.
HISTORICAL DEVELOPMENT OF BOOK-KEEPING
There have been no ascertainable record as to when book keeping and accounting developed. Many schools of thought have numerated the historical development of book – keeping and accounting record from their historical perspectives and philosophical background. It is on record that about 850 BC the early man established the fact that there have been in existence of book-keeping and accounts. Are several prove by academicians a record was discovered which reveals the book-keeping practices. Table of days were used in recording facts and events as well as business transitions. Similarly tablets were also used in reporting on how well the business has been. The modern accounting practice according to list to traced its origin from Egypt which indicted that precious materials like stocks of jewels and other precious stocks were bought and sold by early merchants of dierent countries which sees the facts that proper accountability is necessary in the smooth running of the business and understanding among the owners of the business.
1.2 STATEMENT OF PROBLEMS
To many Nigerians small business men, to get rich quick and short term profitability rather than sustained growth, survival and long term profitability is the aim of being in business. therefore many of them cannot easily be convinced that there is a correlation between sound accounting practices and long range profitability. Even where they do, the problem does not there, because the record must be designed to suite the specific business if it is to be adequate and proper. The question is does proper book keeping eect business profitability?