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Microlesson · 5-min read

Time Keeping vs Time Booking

# Time Keeping vs Time Booking

## Definitions

TermDefinition
Time KeepingRecording the arrival and departure time of each employee
Time BookingRecording the actual time spent by an employee on a single job or process

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## Objectives of Time Booking

1. Ensure time paid for is properly utilised on different jobs

2. Ascertain the labour cost of each job

3. Apportion overhead over jobs when allocation depends on time spent

4. Calculate wages and bonus payable under wage incentive systems

5. Ascertain idle labour hours

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## Comparison Table

BasisTime KeepingTime Booking
What is recordedArrival & departure timeActual time on each job
Primary objectiveStatutory attendance maintenanceAscertain labour cost per job
Methods usedManual methods; Mechanical methodsDaily time sheet; Weekly time sheet; Job card

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## Key Formula Linking Both

> Idle Time = Time recorded on Time Card − Time booked on Job Card

This linkage is why both records must exist simultaneously — time keeping gives total hours paid; time booking shows productive hours; the gap is idle time.

Worked example

### Example 1

Q: An employee's gate card shows 8 hours attendance. His job card shows 6.5 hours booked on jobs. Calculate idle time.

A: Idle Time = 8 − 6.5 = 1.5 hours

This 1.5 hours must then be classified as normal or abnormal idle time for accounting treatment.

⚠️ Common exam mistakes

  • Mixing up the two: Time Keeping = 'when you came and left'; Time Booking = 'what job you worked on and for how long'.
  • Writing that time booking records are maintained by the security/HR department — time booking is maintained by the production/costing department using job cards.
  • Forgetting that idle time can only be computed when BOTH time keeping and time booking records exist.
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