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benefit of the transactions. For a complete record of transaction, it should be presented
in both the accounts. Business transaction affects two aspects of the account in the
opposite direction. If one account receives a benefit there must be another account to
give the benefit. Thus every transaction involves two accounts- one which gives the
benefit of the transaction and another which receives the same. The system, under
which both the receiving and giving aspects are recorded (as Debit and Credit), is
known as the principle of Double Entry System of book keeping. Therefore we can
say that every debit must have a corresponding credit and obviously every credit
must have corresponding debit. It follows that any number of transactions can be
recorded in the above manner; the total debit must be equal to total credits and this
helps drawing of a trial balance to prove the arithmetical accuracy of the account
books.

J.R. Batliboi– "Every business transaction has two fold effects and that affects
two accounts in opposite directions and if the complete record was to be made
of each such transaction, it would be necessary to debit one account and credit
another account. It is the recording of two fold effects of every transaction that
has given rise to the term double entry system."

Munro and Palmer– "Every transaction involving money or money’s worth
has twofold aspects the receiving of value on the one hand and the giving of
the same value on the other. This twofold nature end in all transactions must
be recorded in the books, and this has given rise to the term double entry
system of book keeping."

So we can conclude that, double entry book keeping is a system of recording
transactions that recognizes that there are two sides (aspects) to every transaction.
For example - Machinery is sold for Rs 20,000. This involves giving of machinery
(one aspect) and receiving of Rs. 20,000 (the other aspect). Every transaction involves
giving and receiving. It is important to recognize and record both aspects of every
transaction in book-keeping.

Double entry book keeping system was propounded by Italian business man Luca
De Pacioli in 1494 AD publishing the book- Summa De Aritmetica, Geometrica,
Propertionalita.

Objectives
The objectives of double entry system are listed below:
i. To record the financial transactions in scientific and systematic order.

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