Do you know the methods by which an accountant keeps his books of accounts? The double entry accounting system is applied here. But what is meant by double-entry system of accounting? Why is double entry system important? What is the essence of double entry system? Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts. Double-entry bookkeeping is an accounting system where every transaction is recorded in two accounts: a debit to one account and a credit to another. For example, if a business takes out a $5000 loan, assets are credited $5000 and liability is debited $5000. Don’t you think that this is the fundamental of accounting? Yes, it is, shouldn’t we learn more about it? Can we learn further about the topic with the help of the presentation, shall we? Please refer.

Sneha S Raj

9 resources

0

0

0

Like