explain two merits of double entry system
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Since personal and impersonal accounts are maintained under the double entry system, both the effects of the transactions are recorded. It ensures the arithmetical accuracy of the books of accounts. For every debit, there is a corresponding and equal credit.
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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 was developed in the mercantile period of Europe to help rationalize commercial transactions and make trade more efficient.
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