State True or False.

Double Entry System is scientific method of maintaining books of accounts.

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Solution

True

Explanation: Double-entry system is a scientific system because the entries are recorded taking into account the dual aspect, i.e. the debit and credit aspects of each transaction. Also, under this system, transactions related to all the accounts (i.e. real, nominal and personal) are recorded. Hence, the accounts maintained under this system are complete and reliable.

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Books maintained under double entry system are more reliable as compared to when maintained under single entry system. Comment.

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