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what is double entry system?
Double entry system is based on the principle that every transaction has two fold aspects. In other words, every transaction needs at least two persons. For example, if Hari purchased goods from Nitesh  for Rs. 50,000, this transaction was performed between two persons i.e. Hari and Nitesh. Only one person cannot enter for transaction. Similarly no transaction is as such which has one aspect only. Thus, every business transaction affects at least two accounts or two sides and accordingly records the transaction in two related heads of accounts is known as double entry system. 


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