All the economies events are recorded in the book of accounts under double entrt systwm.explain
Answers
Answer:
Double Entry System of accounting deals with either two or more accounts for every business transaction. For instance, a person enters a transaction of borrowing money from the bank. So, this will increase the assets for cash balance account and simultaneously the liability for loan payable account will also increase.
It’s a fundamental concept encompassing accounting and book-keeping in present times. Every financial transaction has an equal and opposite effect in at least two different accounts.
Equation can be: ASSETS = LIABILITIES + EQUITY
Recording System
Double entry system records the transactions by understanding them as a DEBIT ITEM or CREDIT ITEM. A debit entry in one account gives the opposite effect in another account by credit entry. This means that the sum of all Debit accounts must be equal to the sum of Credit accounts. This method of accounting and book-keeping results in the accurate depiction of financial statements. Thus, it also lowers the rate of errors by detecting them on a timely basis.
Answer:
this is a your answer to the question answer......
