Alcceunting

seco vdirg."
is
Summaxizing and
proce"
antyzing
fnancial transac fon. Tuo COmmon

aytems acc eunting C(Ye

Syuten and
Deuble
Aeceuntirg System.
While
Grerey al
bo h Acceeurting
systems ate
desiqneo
to track inantial inyormation,
tiy difer scope, oyplicaton,
and atvacture. This asign ment
ams to dilexentiate betoeen
to and explain
tfiee
jermatDeuble and Componerts
Accountig ytem.
The Doble Rkeantig Sytem fhat
based the priñciple
fransac ton
evevy inncial acceurts.
at Jeast Jollows
is
that and
the YWe debit
that fes evexy
csedit coresponding
debit, heve is
fundamertal eguation
csedt. The is:
hat qoveTne
his syntem
Pssets = Liabiliies +

Entries Evey ansaction:"

Yecoxded in
Each tansocton
acceunts orce

and Orce Cyedit.

debit
fox exampdeeguipmeht C
companyCauh,
purchase
he
be
acceunt
e9uiprment
debited.
(aset)
accent
cwhile
uilt
wdranet
be Csedifed.
cash
ell
 and Conpleteren:
Aecuray pre/ered
The double- entg gtem
becaus provides complite
Vieo nonial
by enuring
positon pseventing fota
iat total debits eguo!
csedits.
Trial Balane :
Double
Pecountig gtom,
tyial balane wsed
check
to
the recorded tsa actho ni:accuzacy
"Rgpicakle to Organizatious
his ytem wed

bwineses. non and government

os9arizatons to mauntoaun Qccusate

finantiat Tecord.

The
typicatly
Genexal
Acourtirg
to
Syptem
manly
Small buinees indivicals.
Untike douhle
învolwes entg yuton,
fhis pproach ony
enti each transac ton.
bayed
is
income
uualy
and ependiture
On
0

cash busine.

Each Transaction:
Single Entiy Jor
this ten, ondy
apect rarsaction
Sale
vecorded. tor
exanple, Cash
accont
made,
maay
ony be p dat ed,
c thout
m&king ~al es TeverUeo
enty
"Linited Rcauray and CompleteneM:
This systenund is le compseh
- usive prone
becauue cdoesn tack
Loh ides tantochon.
Suitable Small Busineses:
dor
This ytem is easier o
maintan and
may be gcicnt
Small bwineses hat have
fewer ausacton aud Aimpler
inauial stuctue.
"Lack Tzial Baleuce :

In contsart do ubse
enday yten, the ingle-onty
do es not
balonee verifieaton.

Basis o Deuble Aecountirg Geural Acunting

Syten Syten

Nmber Requives o entyie Reguíres ony

Entries Jor each raso tio endy per anuac fon
debi and Gedit

Esuses Linifed
Aecusa dcunacy by maind to
entnes
balance
mýssirg
 betuve on debits aud
credits

Agplication Suifahle dor all Most y wedl

types buineMes, Small binenel
individuals
includirg arge and

o9wationy

finau cial Psovides Compsehan providea partal

Reports SIve finautial seposts Juch
Crenerated veposts like baauce cash statemeuts
sheets, incomnestate
-meuts, and caiß
statemets

Trial Uses tsial Doel nef

balauce
Balane balace to vety

Moe Comp lex aud Simpter aud eare

Conmplety de»ait ed maintain

not meet
Reguited by laur
ComgliaueeJor most orgaixahous u for lave buinesres
 tallous
The Deuble Aceunting
pecific drmat? dor recordirg
tawocton. Beleu is

ats uc fure yed in yrton?

i- his ot
step sere
nty tawactou
xe coT clel. jouvnal oty
inifaly
Jollous the Yule
include
debits and
date.
Credits aud
details ! the fawoctio, aud am0snt.
PachiculaA
Ipbit)Gedit a)
Date

dolotlaa Pusclhase Ac Dr. 5o,000

So,o0o

(i) Ledgar-he jsusnal entses Qye

Vento the
posted xelated
catyovizes
all tawoc tio us
account. Sycla
to
Cash. Salei, Paschases, etc.
 Cask Account

Date Pastieula Dbit Date Pavticular lGseds

tolotlau,Puxcale Ale So,000 Isloil24 By, Sales Alc 1,00,000

h) Tsial Balane i the Jedger

trial balane prparedl
poting
to ersure that to tal
debis guals edits.

Account DAit e) lGed/(

Cash Acceunt I,00,0O0 So,o00
Pascluave Accownt So,00o
Acceunt
Total 4.So,oooHso,0

Acceuts i- his includes

preparatiorn Balance Sheet
aud Loss Qccewnt at
end acceurt g
period to ect Cempay'
franeiat performaice and fasitiou.
(he Double Acceuntig aud Sylen veliable
a m0e zobust
me fhed
maintoirig inanial
Compared Geutal
wile
Cingle - enty) be Auitable
qeneval yntem nay
Sm all buinetes dlouhle
ne ed
simple accentirg
entacceuntb ili ty qreater accuTay
aud Jegally
xeguired most bçin e el.
for
the format aud
Undexstaudig
Componets Double
Accauntg Sytem
that ginaial statem euts are

compeheruive aud accusate.