Write a short note on double Entry System of Accounting. – InterviewSolution

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1.	Write a short note on double Entry System of Accounting.
Answer» Double Entry System of accounting deals with either two or more accounts for every business transaction. For instance, a person enters a transaction of borrowing money from the bank. So, this will increase the assets for cash balance account and simultaneously the liability for loan payable account will also increase. It’s a fundamental concept encompassing accounting and book-keeping in present times. Every financial transaction has an equal and opposite effect in at least two different accounts. Equation can be: ASSETS = LIABILITIES + EQUITY

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