Question

define double entry system​

Answer 1

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Double-entry refers to an accounting concept whereby assets = liabilities + owners' equity. In the double-entry system, transactions are recorded in terms of debits and credits.

Double-entry bookkeeping is an accounting system where every transaction is recorded in two accounts: a debit to one account and a credit to another. For example, if a business takes out a $5000 loan, assets are credited $5000 and liability is debited $5000.

Answer 2

ANSWER :

The accounting system under which both the aspect of every transaction recorded in the books of accounts is known as Double Entry System.

• ✎ Double Entry System states that every transaction has two fold aspects and the effect of these two fold aspects are opposite in nature.

• ✎ If one aspect or a account received a benefit, then there must be another aspect or another account to impart the benefit. Under this system every transaction is recorded in a accounting format having two sides namely left hand side and right hand side.

• ✎ In other words, Double Entry System states that every transaction has two aspects viz., the receiving of value on the one hand and the giving of the same value on the other hand.

• ✎ Double Entry System was first propounded in 1340 in Genoa, in Italy. It was first evolved by a Franciscan Monk of Italy whose name was Fra Luca Pacioli.