Question

A system of book-keeping in which both the aspects of transaction are recorded is ______________.

• A. Single entry system
• B. Double entry system
• C. Statement of affairs
• D. Statement of profit and loss

Answer 1

The correct option is B Double entry system

Double entry system means for every debit there is a corresponding and equal credit. This system is based on the dual aspect concept. Hence, every transaction occurred results into two effect of debit and credit aspects.

On the other hand, single entry system is the one where the dual aspect concept is not followed and the transactions are incompletely recorded.