CHAPTER 7: DOUBLE ENTRY SYSTEM (RULES OF DEBIT AND CREDIT)
LEARNING OUTCOMES: INTRODUCTION RULES OF DEBIT AND CREDIT MODERN APPROACH: ASSET EXPENSE LIABILITY CAPITAL REVENUE TRADITIONAL APPROACH: PERSONAL IMPERSONAL INTRODUCTION CLICK HERE FOR INTRODUCTION, RULES OF DEBIT AND CREDIT, ASSET LINK FOR MY AUDIO Transactions are recorded in the books of accounts on the basis of double entry system. This system is based on the principle of Dual aspect which states that every transaction has two aspects: A debit and a credit of equal amount that is every debit must have a corresponding credit of equal amount in one or more accounts and vice versa. Account is a summarised record of related transactions at one place under a particular head. A separate account is maintained to record transactions relating to each person, asset liability, revenue, expense etc. *All accounts are divided into two sides Debit and Credit. Rules of Debit and Credit From the point of view of recording transactions in an account, there...