Double Entry Book-keeping
Unfortunately we could not locate the table you're looking for.<h1><strong>DOUBLE ENTRY BOOK-KEEPING </strong></h1> CONTENT <ol> <li>Meaning of Double Entry Book-keeping</li> <li>Double Entry Treatment of Assets</li> <li>Double Entry Treatment of Liability</li> <li>Double Entry Treatment of Expenses</li> </ol> <h2><strong>Meaning of Double Entry Book-keeping</strong></h2> Double entry book-keeping means that every debit entry must have a corresponding credit entry. This is a principle or rule that is followed globally in book-keeping system. <h2><strong>Further Explanation</strong></h2> The fundamental concept of accounting is that every business transaction in money or money-worth has two effects: the receipts of a benefit by one account and the giving of a like benefit by another account. Thus, if a value is given, it is also received. The meaning of this is that where there is a giver, there is also a receiver who is called a debtor. The first Golden Rule of bookkeeping therefore states that, <strong>you debit the receiver and credit the giver.</strong> In the process of debiting the account receiving the value and crediting the account surrendering the value, you end up recording every transaction twice, once as a debit entry and again as a credit entry. In effect, <strong>every credit entry must have a corresponding debit entry, and every debit must have a corresponding credit entry.</strong>