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Unit 2: Double Entry System

6. As per the double entry system of accounting what will be the impact of following Notes
transactions on balance sheet:
(a) Mr. Rakesh started business with cash of `1,00,000
(b) Gods sold on credit for ` 10000
(c) Furniture purchased for ` 5000

7. Explain the meaning and importance of double entry system of accounting.
Answers: Self Assessment

1. two accounts 2. mercantile
3. left hand 4. debit
5. accounting 6. true
7. true 8. false
9. true 10. false

2.9 Further Readings

Books Dr. S.N. Maheshwari, Sharad, K. Maheshwari, Financial Accounting, Vikas Publishing
Co. Pvt. Ltd., New Delhi.
R.L. Gupta, M. Radhaswami, Advanced Accountancy, Sultan Chand, New Delhi.
T.S. Grewal, M.C. Shukla, Advanced Accounts, S. Chand, New Delhi.

Online links http://www.globusz.com/
www.futureaccountant.com

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