Record The Double Entry

                                 Record The Double Entry

The fundamental principle of this system lies in analysing the two changes (parties) involved in business transactions and properly recording of both the changes in the books of  accounts. There is no exception to this principle. If a complete picture of the transaction is to be reflected through books of accounts, the double entry system must be duly observed. Otherwise, the books of accounts will fail to provide complete information and the very objective of accounting will be defeated.

In this connection, the sucessive processes of the double entry system may be noted:

                                            JOURNAL           

First of all, transactions are recorded in a book known as Journal.

                                             LEDGER

In the second process, the transactions are classified in a suitable manner and recorded in another book known as Ledger.

                                      TRAIL BALANCE

In the third process, the arithmetic accuracy of the books of account is tested by means of Trail balance.

                                       FINAL ACCOUNTS   

  In the fourth and final process the result of the full year's working is detrmined through final account.