Double Entry System of Book-Keeping in Financial Accounting
What is Double Entry System of Book Keeping in Financial Accounting ? A simple Understanding on Definition/Explanation/Outline/meaning of Double Entry system of Book-keeping in Financial Accounting with example Double Entry System of Book-keeping in Financial Accounting is a system, which means each and every Business Transaction affects or involves at least two Account. One is Debit Account and the other is Credit Account It may be more than two Accounts in a Business Transaction If only two Accounts are found in a transaction one Account will be Debited and the other Account or opposite Account will be Credited. If more than two Accounts are found in a transaction the Debit total amount must be equal to the Credit total Amount. Each and every business transaction in Double entry system of Book-Keeping is based on Traditional Approach and Accounting Equation Approach In both the above approaches, Journal Entry for a particular business transaction is same. a) Traditiona