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The Double Entry System

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The double entry system for expenses and revenues

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The Double Entry System

The double entry system for expenses and revenues

Ureilito Canul
1

expenses revenues increased profit deducted seperate seperate system owner's Drawings expense owner double loss profit

The calculation of profit is achieved by comparing with .
A occurs when the expenses incurred are more than the revenue earned .
If a business makes a , that belongs to the of the business and consequently thier capital is by that amount .
It is important to record expenses in a accounts to enable the business to identify various areas of expenses .
Different types of revenues should also be recorded in accounts to provide information of the income recieved .
The procedure for recording expenses and revenue in the various accounts uses the entry .
" " are recorded in a seperate account . They are are then from the capital account and are never an of the business .