Question

What requirements is imposed by the double entry system in the recording of any business transaction?

Answer 1

Answer:

The double entry system requires two entries for each transaction: a debit and a credit. Any purchases, such as raw materials or assets, as well as any payments from customers, must all be recorded in two places in the ledger under this system.

Answer 2

Explanation:

The double entry system requires two entries for each transaction: a debit and a credit. Any purchases, such as raw materials or assets, as well as any payments from customers, must all be recorded in two places in the ledger under this system.

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.