DOUBLE ENTRY BOOK-KEEPING

FINANCIAL ACCOUNTING SSS1 FIRST TERM        

WEEK 4 & 5

DOUBLE ENTRY BOOK-KEEPING

Note

The day-to-day transactions of a business are recorded in the books of account using the double-entry system of bookkeeping. The term double entry is used because the two effects of a transaction (a giving and a receiving) are both recorded in the ledger.

Double-entry bookkeeping is the system of keeping accounts which involves the recording of the two-fold aspect of every transaction, whereby one account that receives value is debited and another account, which gives value is credited.

 Content

Rules of Double Entry

1. All transactions must be recorded in two accounts, one account is debited and another account is credited.
2. For every debit entry in an…