what do you understand by double entry system explain the principles of double entry system
Answers
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:
Every transaction involves two parties or accounts – one account gives the benefit, and the other receives it.
Every transaction involves two parties or accounts – one account gives the benefit, and the other receives it.It is called a dual entity of transaction.
Every transaction involves two parties or accounts – one account gives the benefit, and the other receives it.It is called a dual entity of transaction.In every transaction, the account receiving a benefit is debited, and the account giving benefit is credited.
Every transaction involves two parties or accounts – one account gives the benefit, and the other receives it.It is called a dual entity of transaction.In every transaction, the account receiving a benefit is debited, and the account giving benefit is credited.The process of keeping account accepting this dual entity i.e., debiting one account for a definite amount of money and crediting the other account for the same amount, is called a double-entry system.