Question

Explain about on double entry system in short ​

Answer 1

Answer:

The double-entry system of accounting or bookkeeping means that for every business transaction, amounts must be recorded in a minimum of two accounts. The double-entry system also requires that for all transactions, the amounts entered as debits must be equal to the amounts entered as credits.

Answer 2

Answer:

• The double-entry system of accounting or bookkeeping means that for every business transaction, amounts must be recorded in a minimum of two accounts. The double-entry system also requires that for all transactions, the amounts entered as debits must be equal to the amounts entered as credits.
• 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.
• Double Entry System is a complete and scientific system of accounting in which both the aspects of a transaction are recorded. Every business transaction has a two-fold effect. It is this recording of the two-fold effect of every transaction that has given rise to the term Double Entry System.