Meaning and features of Double Entry Book Keeping System

Meaning of double entry book keeping system
Double entry book keeping system is a modern and scientific system of recording the financial transactions. It follows the principle that there are two aspects of each business transaction. Both of these aspects i.e., one debit and another credit must be recorded in this system of book keeping. The golden rule for it is that every debit must have a corresponding credit of same amount.In other words, there are two parties in every transaction, one is giver and another is receiver. Generally, the account of receiver is debited and the account of giver is credited.

Features of double entry book keeping system
1. Double Effect- In it, every transaction has two fold effects i.e., debit and credit.
The double aspects of a transaction are recorded in opposite side of two different
accounts.
2. Equal effect- The amount of debit and credit aspects must be equal in terms of
monetary value. The same amount of a transaction is shown in two books on opposite
sides.
3. Classification of accounts- Under it, accounts are classified into three
categories as personal account, real account and nominal account.
4. Checking of Mathematical Accuracy- Since the amount is recorded on the debit and
credit side of two separated books, the total amount is always equal to the
credit. It helps to find the arithmetical accuracy of accounting records by
preparing a trial balance.