Double Entry System
The two parties are affected by each business transaction. One side is the winner and the other is going to give, so each transaction is accounted on both sides. This is called a double accounting system. In this system, no business deal is considered to be complete unless it is calculated in the same way as opposed to each other by the same amount.
Example:- Rahul's Rs. 1,000 are received. This is a transaction. In this transaction, cash has been received by Rahul and Kapil has provided this cash. In this way, there are two sides, getting cash by Rahul and paying by Kapil. According to some prescribed rules, one of these aspects is debit and the second is credit.
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