- - Cash reliable from sale is preserve in interchange register only
- - Goods change on credit are recorded in the individuals account only
- - When cash is accepted from the customer, to whom the something was interchange on credit, the receipt may be just recorded in the account of individual only
Double entry records twain aspects of transaction, such as:
- - When good are exchange on cash the two aspects of the transaction are - the seller has sell goods and received cash against them. The goods sold are benefit transferred to the emptor (Credit) whereas the cash received if the benefit against the goods sold (Debit).
- - When the goods are sold on credit the benefit given is the same i.e. goods sold only the benefit received is not cash but a right to receive cash from the customer. Therefore, in this chemise Debit is given to customers account (account receivable) instead of cash.
- When cash is received from the customer the right to receive cash ceases. So, the benefit received is cash and benefit transferred is the right to receive cash. Here cash will be debited and customer will be credited.
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Basis Double submission System Single Entry System
1. Both Aspects In this, both aspects of a transaction are recorded In this , both aspects of transaction are not recorded. In fact, for some proceedings two aspects, for some others one aspect and yet for others no aspect at all are recoded.
2. Accounts Under this system, personal, accepted and nominal etc., all the accounts are maintained. Thus, it is a complete and contract system of accounting. Under this system, only personal accounts and cash maintain are maintained. Hence, it remains an incomplete...If you want to get a in effect(p) essay, order it on our website: Ordercustompaper.com
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