

InterviewSolution
Saved Bookmarks
1. |
What isdouble entry system |
Answer» \tDouble Entry System is a complete and scientific system of accounting in which both the aspects of a transaction are recorded. Every business transaction has a two-fold effect.\tIt is this recording of the two-fold effect of every transaction that has given rise to the term Double Entry System.\tStages of double entry system include recording, classification and summarising. Recording in Journal or subsidiary books is the first stage of double entry system.\tSecond stage states that transactions are transferred in a cla...\xa0\tIn final stage, all the accounts in the ledger are balanced and put in a list, debit balances on one side and credit balances on the other side.\tFeatures of double entry system are every transaction affects atleast two accounts, aspects may be personal or impersonal, rule based and preparation of trial balance. | |