Submitted to:
Dr. Mohinder Singh

Submitted by:
Harish Vasdev
CUHP13MBA29
What is single entry system?
A single entry system records each accounting
transaction with a single entry to the accounti...
An example of a cash book is:
Double entry system
Concept of Double Entry
• Every transaction has two effects. For
example, if someone transacts a purchase of a
drink from ...
• Accounting system is based on the
principal that for every Debit entry, there
will always be an equal Credit entry. This...
• Double Entry is recorded in a manner that
the Accounting Equation is always in
balance.
Assets - Liabilities = Capital
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Examples of Double Entry
1. Purchase of machine by cash
Debit
Machine (Increase in Asset)
Credit
Ca...
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3. Interest received on bank deposit account
Debit
Cash (Increase in Asset)
Credit
Finance ...
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Dual aspect

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Brief information About Dual aspect in accounting

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Dual aspect

  1. 1. Submitted to: Dr. Mohinder Singh Submitted by: Harish Vasdev CUHP13MBA29
  2. 2. What is single entry system? A single entry system records each accounting transaction with a single entry to the accounting records.  The core information tracked in a single entry system is cash disbursements and cash receipts.  The primary form of record keeping in a single entry system is the cash book,
  3. 3. An example of a cash book is:
  4. 4. Double entry system
  5. 5. Concept of Double Entry • Every transaction has two effects. For example, if someone transacts a purchase of a drink from a local store, he pays cash to the shopkeeper and in return, he gets a bottle of drink. • The double entry system of accounting or bookkeeping means that every business transaction will involve two accounts (or more).
  6. 6. • Accounting system is based on the principal that for every Debit entry, there will always be an equal Credit entry. This is known as the Duality Principal. • The amounts entered into the general ledger accounts as debits must be equal to the amounts entered as credit.
  7. 7. • Double Entry is recorded in a manner that the Accounting Equation is always in balance. Assets - Liabilities = Capital
  8. 8. • • • • • • • • • • • Examples of Double Entry 1. Purchase of machine by cash Debit Machine (Increase in Asset) Credit Cash (Decrease in Asset) 2. Payment of utility bills Debit Utility Expense (Increase in Expense) Credit Cash (Decrease in Asset)
  9. 9. • • • • • • • • • • • • • • • 3. Interest received on bank deposit account Debit Cash (Increase in Asset) Credit Finance Income (Increase in Income) 4. Receipt of bank loan principal Debit Cash (Increase in Asset) Credit Bank Loan (Increase in Liability) 5. Issue of ordinary shares for cash Debit Cash (Increase in Asset) Credit Share Capital (Increase in Equity)

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