Back to Course


0% Complete
0/0 Steps
  1. Introduction to Booking Keeping and Accounting | Week 1
    9 Topics
    1 Quiz
  2. Introduction to Books of Account | Week 2
    5 Topics
    1 Quiz
  3. Subsidiary Books of Account I | Week 3
    4 Topics
    1 Quiz
  4. Subsidiary Books of Account II | Week 4
    4 Topics
    1 Quiz
  5. Principles of Double Entry Book Keeping | Week 5
    1 Topic
    1 Quiz
  6. Cash Book | Week 6
    6 Topics
    1 Quiz
  7. Petty Cash Book | Week 7
    1 Topic
    1 Quiz

  • Do you like this content?

  • Follow us

Lesson Progress
0% Complete

The principle of Double entry States that for every “debit entry”, there must be a corresponding “credit entry” and vice versa. It is the foundation of bookkeeping.

The double-entry system of accounting was first recorded by an Italian mathematician, Luca Pacioli, who is widely known today as the “Father of Accounting”, in 1544 in Venice.

The entries in the cash book and other original books uses the double entry principle. It is applicable to ledger accounts.

The principle operates on the basis that every financial transaction must have two aspects.

Summary of the Principle:

Dr ____ The Receiver (Receiving Account)

Cr ____ The Giver  (Giving Account)

The Procedures to be followed are:
(i) The keeping of books of account.
(ii) The division of each book into separate accounts.
(iii) Each account is divided into two halves left hand side debit (Dr) and right hand side Credit (Cr). 
(iv) All-transactions must be recorded in two accounts, one account is debited and another account credited.
(v) The giver (giving account) is credited with the value of whatever it receives and the receiver (receiving account) is debited with the same amount.

Advantages of Double Entry Principle:

(i) It caters for both personal and impersonal aspect of transactions.
(ii) It enables the final account to be prepared by the subtraction of Expenses from Revenue.
(iii) It facilitates the detection of errors and fraud.

NB: The Double entry principle of accounting was propounded by “De Lucca Paciolo” in 1494

Differences between Debit and Credit Entry:

S/NDebit Entry Represents:Credit Entry Represents:
(i).An increase in the value of assetsA decrease in the value of assets
(ii).A decrease in the amount of a liabilityAn increase in the value of liability
(iii).A decrease in capitalAn increase in capital
(iv).An item of expenditure and expensesAn item of Income or gain


Double Entry Principle
Screen Shot 2021 01 11 at 7.39.54 PM
Screen Shot 2021 01 11 at 7.40.04 PM
Screen Shot 2021 01 11 at 7.42.13 PM
Screen Shot 2021 01 11 at 7.42.28 PM
Screen Shot 2021 01 11 at 7.42.33 PM
Screen Shot 2021 01 11 at 7.43.06 PM
Screen Shot 2021 01 11 at 7.44.01 PM
Screen Shot 2021 01 11 at 7.44.10 PM
Screen Shot 2021 01 11 at 7.44.21 PM
Screen Shot 2021 01 11 at 7.44.30 PM
Screen Shot 2021 01 11 at 7.44.36 PM


Your email address will not be published.