Advertisement Remove all ads

Why are some accounting systems called double accounting systems? - Accountancy

Advertisement Remove all ads
Advertisement Remove all ads
Answer in Brief

Why are some accounting systems called double accounting systems?

Advertisement Remove all ads

Solution

Some accounting systems are called double accounting systems because under this system there are two aspects of every transaction, i.e., every transaction has dual effect.

Every transaction affects two accounts simultaneously, that is represented by debiting one account and crediting the other account. It is based on the fact that if there is receiver, there should be a giver.

Concept: Recording of Transactions 1
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

NCERT Accountancy Financial Accounting 1 Class 11
Chapter 3 Recording of Transactions - I
Questions for practice | Q 5 | Page 87
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×