Chapter – 2 | Meaning and fundamental of double-entry bookkeeping

Double Entry Book-keeping System is the most scientific method of recording all monetary transactions in the books of
accounts. This system owes its origin to Italian Merchant “LUCA D. BARGO PACIOLI” on 10th November 1494 and this day is celebrated as International Accounting Day. This system of Bookkeeping is based on the fact that there are two aspects of every business transactions. Every business transaction involves two persons or accounts or parties where in one is the receiver of the benefit and the other is the giver of the benefit.

If something comes into the business, something goes out from the business. Recording of two aspects of monetary transactions in the Books of Account in terms of Debit (Dr.) and Credit (Cr.) is called as “Double Entry” System of Book-keeping.

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Part 2

Part 3

Part 4

Part 5

Part 6

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