Write the meaning of double entry system and clear its two advantage and disadvantagea?
Meaning of double Entry System:
It is the system of accounting in which every transaction is recorded under debit and credit aspect of accounting.When we record a transaction it has two aspects debit and credit and we record them on the debit side and again on the credit side.
It is based on the principle that every debit must have a credit,that is one account is debited and other is credited.
Advantages of Double Entry System:
1. Complete record of every transaction
2. Knowledge of gross profit and loss
Disadvantages of Double entry system:
1. Error of omission
2. Error of Principle