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what is double entry system of accounting
Double Entry System of Accounting is based upon the fact that there are two aspects of every business transaction. Every transaction involves atleast two persons, parties or accounts. If something comes into the business, it will definitely go out from other business. In the same way, if there is loss for someone, it will definitely be gain for someone else. This proves an established truth 'somebody's loss is another body's gain.' Recording dual aspects of business transaction in terms of 'Debit and Credit' is called Double Entry System.


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