The double entry system of book-keeping is the recording of the two fold aspect of every transactions of business. The fundamental principle of double entry book-keeping stipulates that, “for every debit entry, there must be a corresponding credit entry and vise-versa”. This statement expresses in technical language the fact that we should record our transactions in accordance with the principles of double entry book-keeping.
On this note, therefore, the receiver is changed or in other words be debited with the value he or she or its receives while other words be debited with the same amount and this in effect being the value of what he or she or it gives.
As will be seen later, the main book of account is known as the Ledger and this is divided vertically into two posts with two (thin) lines. Each side contains thus: (i) the dates, (ii)The particulars Its Formats is thus:
DR. -This represents the debit side of this account.
CR. – This represents the credit side of the account.
Date – This represents the days of every transaction.
Particulars – This embraces the name of the person who bought or sold the product(s) or value on transaction. The summary of the said transaction carried on.
Folio (f) – This represents the page on which the account of the person or things, value or object may be seen or referred to.
Amount (N) – This refers to the actual amount that is involved in the business transaction.