20 years: Chartered accountant & educator
In the fifth video of the Accounting Basics series, Saket explores the notion of double-entry bookkeeping, discussing the numerous rules associated with it along with its impacts on the financial statements.
In the fifth video of the Accounting Basics series, Saket explores the notion of double-entry bookkeeping, discussing the numerous rules associated with it along with its impacts on the financial statements.
5 mins 16 secs
The double entry system of bookkeeping is a method of recording transactions based on a set of rules. Every transaction has two impacts, a Debit and a Credit. The rule is that “for every debit, there is corresponding credit and for every credit, there is a corresponding debit”. It is based on the accounting equation; Assets = Liabilities + Equity.
Key learning objectives:
Identify the rules of the double entry accounting system
Outline the impact of double entry accounting on the different elements of the financial statements
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