What is Double Entry System
In Double Entry System or Double Entry Bookkeeping , for every Debit, there is always a Credit in an equal amount or in other words every Business Transaction has two fold effects i.e., One Account is debited and other is credited and both these sides are equal in amounts. So, this Concept of Accounting focuses on Dual Aspect of Business Transactions. Due To Dual Aspect of Accounting Data, Assets are always equal to Liabilities and Owner’s Equity or we can say that it is a Fundamental Principle that: Assets = Liabilities + Equity So, every transaction affects Assets Side (or Left Side ) and Liabilities & Equity Side (or Right Side) of the Accounting Equation at the same time. The above Equation is called Accounting Equation and it is the basic of Accounting Procedures.article You Can Read Out, “ Single Entry Bookkeeping VS Double Entry Bookkeeping ” For Example, Mr. A sold goods worth Rs. 10000 for Cash, then th...