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Topic Content:
- Definition of Double-Entry Bookkeeping
- Basic Rules the of Double-Entry System
- Double Entry Treatment of Assets
- Double Entry Treatment of Liabilities
- Double Entry Treatment of Capital
- Double Entry Treatment of Expenses
What is Double-Entry Bookkeeping?
Double-entry bookkeeping is a system of bookkeeping whereby every business transaction is recorded two times (twice) in two different books of account or ledger. Double-entry means that every business transaction has a double aspect of receiving and giving.
It is a system where transactions are recorded on both the credit and debit sides of the account. It divides the ledger into two halves i.e. Dr. (Debit) and Cr. (Credit).
The left-hand side is known as the debit side while the right-hand is called the credit side.
The account which receives value is debited while the account that gives value is credited.
Basic Rules the of Double-Entry System:
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