Double-Entry Bookkeeping Systems Assignment Example | Topics and Well Written Essays - 250 words

Double-Entry Bookkeeping Systems - Assignment Example Both the debit and the credit sides were introduced in order to ensure that errors were not committed and this would further be proofed when the debit and the credit sides would match at the end of the specified accounting period. In case the debit and the credit sides do not match at the end of the accounting period, there is a severe possibility that an error has been committed. The entries are recorded within three broad classifications; Assets, Liabilities and Equity/Capital. Hence the equation is: Though the double entry system has been created to avoid errors and misstatements, there are several ways through which errors are committed although the double entries are made correctly. Those errors pre-dominantly include these factors: The book keeping system, nowadays, is usually carried out through sophisticated computer accounting softwares. These softwares require appropriate training for their operation and hence it makes it difficult for an amateur to properly understand the double entry book keeping system using such accounting softwares (Mason,