Is Double entry system of book keeping an effective tool for accounting?



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About double entry system of book keeping ?

3 Answer(s)


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Yes double entry system of book keeping is importance tool for accounting because any transaction will have two entries either to the debit side or credit side of the account as rule stated for every debit entries there must be a corresponding credit entries.

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Yes, Due to concept of duality, it affects transactions in a dual manner because any transaction will have two entries either to the debit side or credit side of the account as rule stated for every debit entries there must be a corresponding credit entries. Hence, double entry system of book keeping is an effective tool of accounting.

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Dual aspect is a basic principal of accounting according to which each & every accounting transaction will have two effects one on the debit side and other on the credit side. For example you pay salary in cash to Mr. Ram of Rs. 15,000/-, now the accounting treatment according to the double entry system would be to Debit(Dr.) Salary by Rs. 15,000/- which will appear under the head "Salaries & wages" in the Profit & loss A/c and a corresponding credit(Cr.) the the cash A/c by Rs. 15,000/- which will reduce your cash in hand by Rs. 15,000/- thereby affecting your balance sheet.

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