What is book entry??
This query is : Resolved
05 January 2012
Please let me know what is the meaning of Book entry?
Please explain as one can understand in simple English not as written in the act or rule
Please explain as one can understand in simple English not as written in the act or rule
CA PARAS BAFNA
(Expert)
05 January 2012
An entry which is required to be made in the books of account just for the purpose of better representation even in the absence of a transaction.
.
Say , We provide Depreciation in the books, however, there is no such transaction taking place.
.
Say , We provide Depreciation in the books, however, there is no such transaction taking place.
RAMESH KUMAR VERMA
(Expert)
06 January 2012
agreed with expert
Read Also:
https://en.wikipedia.org/wiki/Book_entry
Read Also:
https://en.wikipedia.org/wiki/Book_entry
06 January 2012
Respected Paras Bafna Sir,
While searching through net, It is also written that the Book entry is only for Govt Officials and department
While searching through net, It is also written that the Book entry is only for Govt Officials and department
03 August 2025
Sure, let's break this down in simple English so anyone can understand:
🔹 What is a Book Entry?
A Book Entry simply means a record made in an account book (or computer system) without actually moving any physical money or documents.
It's like saying:
"Instead of giving you cash, I’ll write in my records that I owe you."
🔹 Example:
Let’s say:
You give ₹1,000 to your friend.
Instead of handing over cash, you write in your notebook:
"I owe Rahul ₹1,000".
This note is a book entry — no money exchanged hands, but it is legally recorded as if the transaction happened.
🔹 In Banking and Government
In government or big institutions:
Book entry means transfer of money, shares, or bonds electronically, without printing physical certificates.
It helps reduce fraud and paperwork.
Example in government use:
When the government issues bonds, no physical paper is given.
Instead, your account shows the bond — that's a book entry form.
🔹 Is Book Entry Only for Government?
Not at all. It is used by banks, companies, and individuals too.
The confusion comes because in some cases, like for government securities, book entry is the only allowed method — no physical form is issued.
✅ Summary (Simple Words):
Book entry = Just a written or digital record of a transaction.
No cash or physical document is involved.
Used in banking, accounting, business, and government.
Safe and convenient way to record transactions.
🔹 What is a Book Entry?
A Book Entry simply means a record made in an account book (or computer system) without actually moving any physical money or documents.
It's like saying:
"Instead of giving you cash, I’ll write in my records that I owe you."
🔹 Example:
Let’s say:
You give ₹1,000 to your friend.
Instead of handing over cash, you write in your notebook:
"I owe Rahul ₹1,000".
This note is a book entry — no money exchanged hands, but it is legally recorded as if the transaction happened.
🔹 In Banking and Government
In government or big institutions:
Book entry means transfer of money, shares, or bonds electronically, without printing physical certificates.
It helps reduce fraud and paperwork.
Example in government use:
When the government issues bonds, no physical paper is given.
Instead, your account shows the bond — that's a book entry form.
🔹 Is Book Entry Only for Government?
Not at all. It is used by banks, companies, and individuals too.
The confusion comes because in some cases, like for government securities, book entry is the only allowed method — no physical form is issued.
✅ Summary (Simple Words):
Book entry = Just a written or digital record of a transaction.
No cash or physical document is involved.
Used in banking, accounting, business, and government.
Safe and convenient way to record transactions.
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