Question

What is Double-entry system of book keeping?

Answer 1

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Every bussiness trancetion involves two aspects. one aspects give the benefit and another aspects received the benefits. Both these aspects are to be recorded to be aacount books. For every Aspect there is an account in leader. Every leader account has two sides one account receives the benefits and another account give the benefits. This system called Double entry system.
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Answer 2

"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 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's equity to decrease.

In that example, the asset Cash decreased and the owner's capital account within owner's equity also decreased."