A few days ago
what do u mean by double entry system of bookkeeping and accountancy?and explain its advantages.?
what do u mean by double entry system of bookkeeping and accountancy?and explain its advantages.?
Top 1 Answers
A few days ago
Favorite Answer
For every transaction that happens, you record it in 2 different accounts. In one account you will write it on the debit side, in the other account, you will write it on the credit side.
The Credit Side are the values parted with while the Debit Sides are the values received.
Increase in assets, decrease in liabilities are examples of debits while decrease in assets, increase in liabilities are examples of credits
The advantages here is that you can see errors more easily… because debits are always equal to credits…
ex:
If you paid for a $1000 equipment in cash
Values Recieved/Debit: Equipment (worth $1000)
Values Parted With/Credit:: Cash on Hand(worth $1000 )
They are equal therefore you recorded correctly.. this is somehow the essence of double-entry
0
- Academic Writing
- Accounting
- Anthropology
- Article
- Blog
- Business
- Career
- Case Study
- Critical Thinking
- Culture
- Dissertation
- Education
- Education Questions
- Essay Tips
- Essay Writing
- Finance
- Free Essay Samples
- Free Essay Templates
- Free Essay Topics
- Health
- History
- Human Resources
- Law
- Literature
- Management
- Marketing
- Nursing
- other
- Politics
- Problem Solving
- Psychology
- Report
- Research Paper
- Review Writing
- Social Issues
- Speech Writing
- Term Paper
- Thesis Writing
- Writing Styles