What do you understand by Double Entry System state its advantages.

“The double entry system is that system which recognizes and records both the aspects of transactions”. This system has been proved to be systematic and has been found √of great use or recording the financial affairs of are institutions requiring use of money. Advantages of Double Entry System: - 1) Scientific System – As a matter of fact, this system is the only scientific system of recording business transactions as compared to other systems of book-keeping, it helps attain the objectives of accounting. 2) Complete records of transactions - this system maintain a complete record of all business transactions. 3) A check on the accuracy of accounts - by the use of this system the accuracy of the accounting work can be established through the device of the trial balance. 4) Ascertainment of profit or loss - the profit earned or loss suffered during a period can be ascertained together with details by preparation of profit and loss account. 5) Comparative study is possible – results of one year may be compared with those of previous years and reasons for the change may be ascertained. 6) Helps management in decision-making – the management may be able to obtain good information for its work, specially in making decisions.