Double entry system of book keeping

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How are the entries recorded on the basis of double entry book keeping system. Does these entries have an affect on the financial statements. If yes which are the financial statements that are affected.

Replies (8)

I do not understand  the menaing of your question, please clarify in detail.
 

IT IS THE BASIC OF OF ACCOUNTING...........

 

ANY TRANSACTION YOU RECORD IN  YOUR BOOKS SHALL AFFECT 2 ACCOUNTS, THIS IS WHAT DOUBLE ENTRY MEANS...

LET US SAY YOU WITHDREW CASH FROM BANK RS 10000, THEN YOU PASS THE ENTRY

CASH.... Dr

TO BANK

IN THE ABOVE, TWO ACCOUNTS NAMELY CASH AND BANK ARE IMPACTED.

DOUBLE ENTRY IS THE MOST RECOGNISED FORM OF ACCOUNTING.

ANY TRANSACTION...... IT SHOULD IMPACT 2 ACCOUNTS.

https://en.wikipedia.org/wiki/Double-entry_bookkeeping_system

VISIT THE ABOVE LINK

Originally posted by : SIDHARTH DHIR

IT IS THE BASIC OF OF ACCOUNTING...........

 

ANY TRANSACTION YOU RECORD IN  YOUR BOOKS SHALL AFFECT 2 ACCOUNTS, THIS IS WHAT DOUBLE ENTRY MEANS...

LET US SAY YOU WITHDREW CASH FROM BANK RS 10000, THEN YOU PASS THE ENTRY

CASH.... Dr

TO BANK

IN THE ABOVE, TWO ACCOUNTS NAMELY CASH AND BANK ARE IMPACTED.

DOUBLE ENTRY IS THE MOST RECOGNISED FORM OF ACCOUNTING.

ANY TRANSACTION...... IT SHOULD IMPACT 2 ACCOUNTS.

 agree with sudhir

dear friends,

How are the entry to recorded - Salary a/c, employee's epf, esi  & same payable entry

Your question is unclear. Financial statements themselves are created on the basis of double entry book keeping system. so your question "which are the financial statements that are affected" is a bit strange. kindly explain your question in detail??

 

wherein both debit and credit aspect of a transaction is recorded. Each transaction has equivalent debit and credit ledger  
accounts in the account books.

EXAMPLE
CASH DEPOSITED TO BANK:

CR CASH A/C
DR BANK A/C.

WE HAVE PAID  THE PENALTY OF RS. 2700.00 TO IT DEPT. FOR A.Y.0607 IN THE F.Y. 10-11. PL. SUGGEST WHICH HEAD TO SELECT FOR THE BOOK OF THIS ENTRY?

 

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