Question

When double entry system is followed to record the business
transactions then:

(a) Debit and Credit amount must be equal
(b) Debit and Credit amount may not be equal
(c) Only two accounts are affected
(d) Balance of one account increases and other account decreases.​

Answer 1

Answer:

option a debit and credit amount must be equal

Answer 2

ANSWER :

When double entry system is followed to record the business transactions then:

(a) Debit and Credit amount must be equal ✓

(b) Debit and Credit amount may not be equal

(c) Only two accounts are affected

(d) Balance of one account increases and other account decreases.

• When double entry system is followed to record the business transactions then Debit and Credit amount must be equal.

MORE TO KNOW :

❖ Double Entry System :-

• ➮ The double entry system was first evolved by Fra Luca Pacioli. This system recognises the facy that there are two fold aspects in every business transactions. The basic principle followed under this system is that every debit must have a corresponding credit. The amount of the debit side must be equal to the credit side.

❖ Features of Double Entry System :-

• ➮There are two fold aspects in every business transaction recorded in the books of account under Double entry system.

• ➮For every debited account, there must have a corresponding credited account and the balance of both sides must be equal.

• ➮Changes are recognized from the point of view of the party in whose books of account recording is being done.

• ➮Changes are recorded in two related accounts in the books of the party in whose books recording is being done.