Chapter 3 - Bookkeepers and Accountants Choose Double Entry Bookkeeping for Accuracy

http://www.articlesbase.com/business-articles/bookkeepers-and-accountants-choose-double-entry-bookkeeping-for-accuracy-276500.html

Summary
The media report that I am blogging about is how bookkeepers and accountants chose double entry bookkeeping for accuracy. Double entry bookkeeping goes back to the 12th century and is now the accounting standard for companies recording financial accounting records. So basically, an asset is a debit balance while a liability is a credit balance. So double entry bookkeeping has a double effect. For journal entries, both sides of a transaction may have no effect on the profit. Double entry bookkeeping shows the profit of a business by numerical terms that improves financial performance. Basically, accountants are benefited by this because every transaction has an equal and opposite entry and they can check their work mathematically that makes sure it’s correct and accurate. So the article is trying to say that Accountants and Bookkeepers would rather use double entry bookkeeping than single entry bookkeeping because double entry bookkeeping is more accurate by the means that you can check your work mathematically.

Connections
This article connects to chapter 3 because chapter 3 discuses double entry bookkeeping a lot as does this article. See, the article explains how double entry bookkeeping is used and where it would work out best. It explains how it connects with journal entries and the effect is has on the profit. So basically, Double Entry Bookkeeping is a good way for accountants to record their work because it can be easily checked by math and looking back. This article also explains that by double entry bookkeeping there will always be a double effect and in the book it shows that how in double entry bookkeeping, if you buy something, your assets will increase and decrease. This chapter also discusses the role of debits and credits in the recording of transactions and that is explained in this article by double entry bookkeeping which explains that there will always be two sides to a transactions. So basically, the two connect by means of transactions and the use of double entry bookkeeping.

Personal Reflection
I believe that double entry bookkeeping is a real great mechanism that can be used in every business. I think that it is way better then single entry bookkeeping because it is more accurate and useful for accountants and bookkeepers. I like double entry bookkeeping because there are always 2 sides to a transaction and even if you mess up, you can fix it up because it is more organized and easier to follow. I believe that all of the huge companies should use double entry bookkeeping because it would be way more useful and accurate. Instead of making mistakes through single entry bookkeeping, you should rather use double entry bookkeeping because it can also show the profit of a business by numerical terms that can improve the company’s financial performance. All in all, I think that Double Entry Bookkeeping is a real good technique because it helps you check over your work since the total debit entries must equal the total credit entries, the financial position of a business can be stated at any point of time and it helps reduce the risk of errors and helps detect any errors or fraud.

Mandeep Dhami
Financial Accounting 12
Block A