Question: Explain the double entry mechanism with an illustrative example.

Explain the double entry mechanism with an illustrative example.

Step by Step Solution

★★★★★

3.39 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The double entry mechanism is a fundamental accounting concept that ensures every financial transaction is recorded in at least two accounts thereby m... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Financial Accounting Questions!

Q:

Camal Terry signed a Sales Contract to buy a 1995 BMW 3 Series from Robin Drive Auto, a car dealership in Delaware. Terry agreed to pay $4,995, and Robin Drive agreed to hold the BMW on layaway for...

Q:

List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...

Q:

Exhaustively distinguish between the final accounts of a manufacturing company from that of a trading company ii. Discuss with an illustrative example how common expenses are treated in the final...

Q:

Discuss risks associated with MAKING the journal entry. For instance, think about the timing, who makes the journal entry, or even patterns that may appear over time that would be of interest to...

Q:

List the items under each main BoP account and explain each by giving examples. Give two debit and two credit item transactions as discussed above (One example given was U.S. foreign direct...

Q:

List the items under each main BoP account and explain each by giving examples. Give two debit and two credit item transactions as discussed above (One example given was U.S. foreign direct...

Q:

Balance of payments keeps a record of international economic transactions between the residents of a country and foreign residents. The International Monetary Fund (IMF) is the primary source of...

Q:

summarize this journal, the length of summary should not be more than 2 pages Journal of Banking & Finance 37 (2013) 578-586 Contents lists available at SciVerse ScienceDirect Journal of Banking &...

Q:

21B ACC 102 CAS Depreciation and Control accounts Assignment Question One Banky Inc is a technology company performing rescarch for pharmaceutical companies. The finance director has contacted your...

Q:

ACC 102 CA 6 Depreciation and Control accounts Assignment Question One Banky Inc is a technology company performing research for pharmaceutical companies. The finance director has contacted your...

Q:

ACC 102 CA 6 Depreciation and Control accounts Assignment Question One Banky Inc is a technology company performing research for pharmaceutical companies. The finance director has contacted your...

Q:

1. What is quality? What factors define quality for Montonis products? 2. What lessons about valuing a business can you take away from this video? 3. What do you think of the market potential for...

Q:

Data related to a bond issued by Roxon enterprises is given below : Interest expense on bond $800000 Increase in interest payable on bond $8000 Decrease in discount on bond $2,000 Cash paid for...

Q:

Under what circumstances do you use a p chart?

Q:

=+6. Assume that as of September 1, 2010, 7,000 units of halogen light have been produced and sold during the current year. Analysis of the domestic market indicates that 3,000 additional units of...

Q:

What is the purpose of preparing trading and profit and loss account?

Q:

What are the objectives of preparing financial statements ?

Q:

From the following balances prepare trading and profit and loss account and balance sheet for the year ended March 31, 2006 Account Title Opening stock Purchases Sales Returns (Dr.) Returns (Cr.)...

Q:

A bag contains 4 red balls and 3 blue balls 4 balls are selected at random. find the probability of selecting 4 red balls

Q:

Tex Corp has the following budgeted data: MFG Overhead: $380,000 MACH HRS (Driver) are as follows: Job 10: 10,4000 Job 11: 7,800 Job 12: 18,200 Job 13: 15,600 Jobs 10, 11 & 12 were finished. Job 10...

Q:

Basil Company, a cash-basis taxpayer, had the following activity during Year 1: Sales in Year 2, uncollected $ 40,000 Sales in Year 2, collected 1,000,000 Total sales in Year 2 1,040,000 Collections...