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Double entry system is the system under which both the transactions are recorded (debited amount and credited amount). The first book on double entry system was written by Locus Pacioli in 1494. The basic accounting equation used is (Assets= Liabilities+ Owner’s equity). It helps to minimize the chances of fraud by the help of systematically and scientifically recorded transactions. Various methods of detection are by verification, vouching and auditing of records.Double Entry System of Book Keeping Assignment Help provides detailed study of double entry system of book keeping.
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Advantages and Disadvantages
The advantages of Double entry system of book keeping is given in Double Entry System of Book Keeping Assignment Help, they are: –
• This method helps in keeping complete account as both the aspects of each and every transaction are recorded.
• It is easy to find and detect mistakes under this method.
• With the use of this method, statistics are easily available which helps the management to take appropriate decisions and the business can run smoothly.
• Transactions can be viewed or are arranged in chronological order and can be accessed easily and quickly.
• We can easily access the amount owed by debtors and the total amount owed to creditors.
• It makes the use of trial balance procedure to verify the arithmetical accuracy of the books by making the two sides i.e. debits column and credit column equal.
• It becomes easy to assess the financial position of the business by the use of double entry system of book keeping. All the accounts relating to assets and liabilities are taken together and a balance sheet is formed.
• It becomes easy to discover the result of the business by the use of double entry system. All the accounts related to income or revenue and expenses or losses are taken together to prepare a profit and loss account.
• It helps to compare performance of the business with its past records like sales, purchase of goods, revenue, stocks and profit or loss. By the help of this initiative the causes of failure can be detected and remedial measures should be taken in order to solve it.
The disadvantages of Double entry system of book keeping is given in Double Entry System of Book Keeping Assignment Help, they are: –
• Transaction is recorded in books in two stages (journal and ledger) and in two different sides (debit and credit). This results in increase in the number of books and sizes and hence complication increases.
• Small firms could not involve this type of method in their management as it requires time, labour and money.
• Expert knowledge is required to keep this type of accounts.
• Possibility of errors and mistakes arises due to complexity of the system.
Features of Double Entry System of Book Keeping Assignment Help are: –
Clients looking for Double Entry System of Book Keeping Assignment Help from us can expect a few pros and traits: –
• Efficient way of Book Keeping Management.
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