what is double entry system
Answers
Answer:
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.
Answer:
Question ⤵️
what is double entry system?
Answer ⤵️
Accounting is based on a principal of dual concept. For every transaction which occur in a firm will give the impact on two accounts, hence it is called as double entry system of accounting. Once good is purchases by spending cash, good account and cash account gets effected. Goods will come in the business and cash will go out from the business. Double entry system records the transactions by understanding them as a DEBIT ITEM or CREDIT ITEM. A debit entry in one account gives opposite effect in another account by credit entry. This means that the sum of all Debit accounts must be equal to the sum of Credit accounts. This method of accounting and book-keeping results in the accurate depiction of financial statements. Thus, it also lowers the rate of errors by detecting them on a timely basis.
Explanation:
hope it will help you buddy