Question

write the features of double entry system?

Answer 1

Here is your answer....
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Two parties: transaction takes place only if there are two parties- one party receiving the benefit other party giving or parting with the benefit.

Each party is affected (by the transaction) in opposite direction but with the same amount.

Each transaction affects at least two items in an accounting equation. Accounting equation is composed of three elements namely Assets, Liabilities and Capital.

Account receiving the benefit is debited and recorded on the left hand side and the account rendering the benefit is credited and recorded on the right hand side.

For each transaction debit amount is equal to the credit amount.

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Hope this helps you....✌️✌️

Answer 2

Answer:-

• It maintains a complete record of each transaction.
• It recognises two fold aspect of every transaction, the aspect of receiving and the aspect of giving
• .In this system, one aspect us debited and the other aspect is credited following the rules or debit and credit.
• Since all aspect of a transaction is debited and the other is credited,the total of all debits is always equal to total of all credits.It helps in establishing arithmetical accuracy by preparing the Trial Balance.