The Double entry system of book keeping comprises of the following features :

  • Every business transaction affects two accounts.
  • Each transaction has two aspects, i.e., debit and credit.
  • Maintains a complete record of all business transactions.
  • Helps to check the accuracy of the accounting transactions, by preparation of trial balance.
  • Helps ascertaining profit earned or loss occured during a period, by preparation of Profit & Loss Account.
  • Helps ascertaining financial position of the concern at the end of each period, by preparation of Balance Sheet.
  • Helps timely decision making based on sufficient information
  • Minimises the possibilities of fraud due to its systematic and scientific recording of business transactions.