Double Entry System: The double$-$entry system of accounting means that there must be minimum two parties for every business transactions of an organization where one party take the advantages and another party provide the same amount of advantages. The party, who take the advantages, is recorded as debtor and the party who provide the advantages is recorded as creditor in the books of accounting. This system is called double entry system. Rules Regarding Debit and Credit: Assets $+$ Expenses $+$ Drawing $=$ Liabilities $+$ Income $+$ Capital