Question

what is Double Entry System?​

Answer 1

Answer:

Double Entry System

Double Entry System of accounting deals with either two or more accounts for every business transaction. For instance, a person enters a transaction of borrowing money from the bank. So, this will increase the assets for cash balance account and simultaneously the liability for loan payable account will also increase.

It’s a fundamental concept encompassing accounting and book-keeping in present times. Every financial transaction has an equal and opposite effect in at least two different accounts.

Equation can be: ASSETS = LIABILITIES + EQUITY

Answer 2

double entry system of accounting deals with either 2 or more accounts for every business transactions for instance person enter a transaction of borrowing money from the bank so this will assist for cash balance account and simultaneously the liability for loan payable account will also increase