Double entry bookkeeping is the method used to transfer our weekly or monthly totals from our books of original entry into the nominal ledger. Basic rule to remember is that:- EVERY FINANCAL TRANSACTION gives RISE TO TWO ACCOUNTING ENTRIES, ONE A DEBIT AND THE OTHER A CREDIT. Also note that: (a) An increase in an [...]
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Below are two questions and answers on topics on Accounting Equation: Question No 1: Fill In The Blank for the following: 1.0 Assets Liabilties Capital a 40,000 10,000 ? b 15,000 ? 11,000 c ? 5,000 10,000 d 11,000 8,000 Answer: 1a $30,000 ($40,000-$10,000) 1b $4,000 ($15,000-$11,000) 1c $15,000 ($5,000+$10,000) 1d $3,000 ($11,000-$8,000) Question No. [...]
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The double entry bookkeeping has mainly been accredited to one Italian, Frater Luca Bartolomes Pacioli (1445-1517). Actually Pacioli did not invent double-entry bookkeeping,however, on November 10, 1494 he published the first complete textbook, “Summma de Arithmetica, Geometria: Proportioni et Proportionalita” (meaning “ Everything About Arithmetic, Geometry and Proportion”) describing the standard accounting system with such detail [...]
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An account is a record which is used to record individual transaction. An account basically is made up of three parts: A title which is the name of the item recorded in the account; Each account has a space for recording increases in the amount of the item and Each account has a space for [...]
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One of the basic fundamental accounting principle is the Dual Aspect Concept which MUST be understood by all. This dual aspect concept is also called Double Entry Methodology
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