DOUBLE ENTRY BOOK KEEPING

Double entry is a system where involve two account. One is debit and one is credit.For example a business got some money from his customer, the company's asset is incressed and decressed liability. we can explain it by-
                           cash---------------dr
                           recerivable-------cr

Under the double-entry system every business transaction is recorded in at least two accounts. One account will receive a "debit" entry, Another account will receive a "credit" entry.It is a foreign language.

Actually it has two effect. one is debt, meaning the amount will be entered left side and other is credit that will be enterde right sight.When debit & credit entry will be equal then account will be correct.For example- A business sell goods 500 on credit with 17% sales tax. Then accounting entry will be-
                  Receivable------------------------------------------dr  585
                       sales tax-------------------------------------------cr  85
                       sales-----------------------------------------------cr  500

We saw that every business transection effect two account.It is known as double entry book keeping.