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BASIC PRINCIPLES DOUBLE ENTRY BOOKKEEPING VERIFICATION

As a result, the total amount of debt and total amount of credit will be equal. Under this system, every debit for a certain amount of money will have corresponding credit for an equal amount.

BASIC PRINCIPLES DOUBLE ENTRY BOOKKEEPING VERIFICATION

Verification of arithmetical accuracy: If the accounts are kept using the double entry system, the arithmetical accuracy of accounting can be verified by preparing a trial balance.As a result, this system keeps track of all parties involved in transactions. debit and credit are recorded concurrently, the double entry system can retain entire records of transactions. Complete accounts of transactions: Since it is based on the dual aspects of each transaction, i.e.Complete accounting system: Double entry accounting system is a scientific and comprehensive accounting method.

Results: In the double entry bookkeeping system, the total amount on the credit side must be equal to the total amount of money on the credit side.

The left hand side of the transaction (debit side, also known as receiver) and the right hand side (credit side, also known as the giver).

Dual aspects: Every transaction is divided into two aspects.

Here, trendingaccounting and Donald are treated as two separate entities. For instance, Mr Onyema Donald, owns TrendingAccounting media. This is called the business entity concept.

Separate entity: Under this accounting concept, business is treated as a separate entity from the owner.

Exchange of equal value: In a transaction, the amount of money given by one side equals the amount received by the other.Giver and receiver: There must be one giver and one receiver for each transaction.This is the most important rule in accounting and bookkeeping. According to the principle of the double entry system, for every credit entry, there must be a corresponding debit entry and for every debit entry, there must be a corresponding credit entry. Two parties: Every transaction involves two parties: debit and credit.