Class 11 Accountancy
Chapter: Double Entry System
Introduction
Double Entry System is the basis of modern accounting. Under this system, every
business transaction has two effects. One account is debited and another account is
credited. This system helps in maintaining complete and accurate records of business
transactions.
Meaning of Double Entry System
The system was developed to record both aspects of every transaction. For example,
when cash is received, one account increases and another account decreases.
Therefore, both accounts are recorded in the books of accounts.
Objectives
1. To maintain complete records of transactions.
2. To know profit or loss of business.
3. To know financial position of the business.
4. To reduce chances of errors and frauds.
Features
1. Every transaction affects two accounts.
2. Debit and Credit aspects are recorded.
3. Accounting equation is always balanced.
4. Helps in preparation of trial balance and final accounts.
Accounting Equation
Chapter: Double Entry System
Introduction
Double Entry System is the basis of modern accounting. Under this system, every
business transaction has two effects. One account is debited and another account is
credited. This system helps in maintaining complete and accurate records of business
transactions.
Meaning of Double Entry System
The system was developed to record both aspects of every transaction. For example,
when cash is received, one account increases and another account decreases.
Therefore, both accounts are recorded in the books of accounts.
Objectives
1. To maintain complete records of transactions.
2. To know profit or loss of business.
3. To know financial position of the business.
4. To reduce chances of errors and frauds.
Features
1. Every transaction affects two accounts.
2. Debit and Credit aspects are recorded.
3. Accounting equation is always balanced.
4. Helps in preparation of trial balance and final accounts.
Accounting Equation
