Question

What are the fundamental principles of double entry system?

Answer 1

The basic principle of double entry bookkeeping is that there are always two entries for every transaction. Oneentry is known as a credit entry and the other a debit entry.

Answer 2

Answer:

Double entry system is based on fundamental principles like:

1. Always when account will be credited and another would be debited.
2. The recording of transactions, for which account is to be debited and which is to be credited is made according to certain specified rules.
3. Trial balance is prepared by by adding all the credits and debits. The accurate results would be, credit=debit.
4. All the personal and impersonal aspects of transaction are recorded in double entry system.

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