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What is Double-entry system of bookkeeping? |
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Answer» Every business transaction involves two aspects. Of these one aspect gives the benefit and the other aspect receives the benefit. Both of these aspects are to be recorded in books. For every aspect, there is an account in the ledger. Every ledger account has two sides, one account receives the benefit and the other account gives the benefit. While entering the aspects, we enter two aspects on opposite sides. This system is called the Double entry system of book-keeping. |
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