Double Entry System

                                    Double Entry System

we know that every business transaction causes atleast two changes in the financial position of  a business concer at the same time-hence, both the changes must be recorded in the books of account. Otherwise, the books of accounts will remain incomplete and the result ascretained therefore will be inaccurate. 

                         " The system under which  both the changes in a transaction

                            are recorded togather- one change is debited, while the 

                                other change is credited with an equal amount-is 

                                          known as Double Entry System."

Locus pacioli, an italian wrote  a first book on double entry system in 1494. It is regarded as the best and the only scientific method of accounting system universty accepted throuhout the world. It has been built on well defined rules and principles which is the foundation of modren Accountancy.