What is double entry book keeping?
At least 5 points
Answers
Double-entry bookkeeping, in accounting, is a system of bookkeeping so named because every entry to an account requires a corresponding and opposite entry to a different account. The double entry has two equal and corresponding sides known as debit and credit. The left-hand side is debit and right-hand side is credit. For instance, recording a sale of $100 might require two entries: a debit of $100 to an account named "Cash" and a credit of $100 to an account named "Revenue."
The accounting equation
{\displaystyle {\text{Assets}}={\text{Equity}}+{\text{Liabilities}}} {\displaystyle {\text{Assets}}={\text{Equity}}+{\text{Liabilities}}}
is an error detection tool; if at any point the sum of debits for all accounts does not equal the corresponding sum of credits for all accounts, an error has occurred. However, satisfying the equation does not guarantee that there are no errors; the ledger may still "balance" even if the wrong ledger accounts have been debited or credited.
░▒▓█►─═ ᴛʜᴇ ᴅᴏᴜʙʟᴇ ᴇɴᴛʀʏ ʙᴏᴏᴋ ᴋᴇᴇᴘɪɴɢ ═─◄█▓▒░
Define
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.
°°°·.°·..·°¯°·._.· ͏m͏a͏i͏n ͏p͏o͏i͏n͏t͏s ·._.·°¯°·.·° .·°°°
▶The double entry system of accounting or bookkeeping means that every business transaction will involve two accounts (or more). For example, when a company borrows money from its bank, the company's Cash account will increase and its liability account Loans Payable will increase. If a company pays $200 for an advertisement, its Cash account will decrease and its account Advertising Expense will increase.
▶Double entry also allows for the accounting equation (assets = liabilities + owner's equity) to always be in balance. In our example involving Advertising Expense, the accounting equation remained in balance because expenses cause owner equity to decrease. In that example, the asset Cash decreased and the owner's capital account within owner's equity also decreased.
▶A third aspect of double entry is that the amounts entered into the general ledger account as debits must be equal to the amounts entered as credits.
ʙᴇ ʏᴏᴜʀs ..........^_^
