Book keeping is the branch of
knowledge which tells us how to keep the records of financial transactions. The
need for recording such transactions arises because it is difficult to remember
all financial transactions during a period of time. There are two system of
recording such financial transactions: a)single entry book keeping
system
b)Double entry book keeping
systemUnder single entry system, a
complete record of each and every transactions is not maintained. Under this
system, only one aspect of transaction is recorded.But double entry system is a
complete recording system. It records both aspects of transactions.Double entry system is modern and
scientific system of recording the financial transactions. This system
recognizes that every financial transactions has two aspects. Both of these
aspects are recorded under this system of book-keeping. In other words, the
system of making two entries for recording a transactions in the books of each
contracting party, is called 'double entry system of book keeping'
Book keeping is the branch of knowledge which tells us how to keep the records of financial transactions. The need for recording such transactions arises because it is difficult to remember all financial transactions during a period of time. There are two system of recording such financial transactions: a)single entry book keeping system
b)Double entry book keeping systemUnder single entry system, a complete record of each and every transactions is not maintained. Under this system, only one aspect of transaction is recorded.But double entry system is a complete recording system. It records both aspects of transactions.Double entry system is modern and scientific system of recording the financial transactions. This system recognizes that every financial transactions has two aspects. Both of these aspects are recorded under this system of book-keeping. In other words, the system of making two entries for recording a transactions in the books of each contracting party, is called 'double entry system of book keeping'
No comments:
Post a Comment