Page 1 of 21

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 02

March 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 209

To Study & Implementation of Double Entry System

in Accounting

Gurjeet Kaur

Malwa College Bathinda, India

Email Id: - Gurjeet907@Gmail.Com

ABSTRACT

The root of all business analysis and

forecasting is the record keeping system.

Accounting is a subject that is taught

everywhere with common principles, but the

methods of entering business transactions

can be entirely different across the wide

variety of accounting software on the

market. Attempt to understand the

principles of accounting, and then do your

best to adapt those principles to the

particular software that you have.

Double-entry accounting was invented long

before computers came along. Along with

double-entry accounting came a new

vocabulary; the most common terms of

which are debits and credits. For those of

you who have formally studied accounting

the following section may be a review from a

different perspective. Formal accounting is

not necessary for the use of most accounting

programs, but a working understanding of

whether an entry for a transaction should be

a debit or credit will reduce the confusion of

entering transactions. As you work with

your accounting program you will become

more familiar with how it operates and

begin to think in terms of debits and credits.

The first thing one need to do when learning

about debits and credits is to concentrate on

the accounting definition for debit and credit

and forget any other connections for a

second. For instance, a debit is not a debt,

though they both were derived from the

same Latin root. Credit, as it is used for

lending, comes closer to having the same

meaning, but it isn't exact.

Page 2 of 21

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 02

March 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 210

The research on To Study &

Implementation of Double Entry System in

Accounting is completely attached with

database system. In this research we can

attach visual basic 6.0 programming

language, database with Crystal Reports.

We can attach with database of an

Accounting System and generate the Double

Entry System in Accounting. If we required

enter information on the form and create the

print using print command then we are

making a Double Entry System in

Accounting. So my research is that if we

required enter the data of Groups,

Multigroups, Ledgers, Vouchers, Daybook,

and Month Summary then we can create the

Trial Balance, Profit Loss and Balance

Sheet of the organization. This research is

used for maintained the Double Entry

System in Accounting of organization which

is very tough task and which is better for the

organization to make an efficient Double

Entry System in Accounting. This research is

completely based on coding.

Keywords: - Visual Basic 6.0

Programming, Database, Visual Basic

Programming Control i.e. ADO and

Reporting tool Crystal Report.

1.INTRODUCTION

1.1 Double Entry System

Double-entry bookkeeping, in accounting,

is a system of bookkeeping so named

because every entry to an account requires a

corresponding and opposite entry to a

different account. For instance, recording

earnings of $100 would require making two

entries: a debit entry of $100 to an account

called "Cash" and a credit entry to an

account called "Income."

The earliest known written description of

double-entry accounting comes from

Franciscan friar Luca Pacioli. In deciding

which account has to be debited and which

account has to be credited, the golden rules

of accounting are used. This is also

accomplished using the accounting equation:

Equity = Assets − Liabilities. The

accounting equation serves as an error

detection tool. If at any point the sum of

debits for all accounts does not equal the

corresponding sum of credits for all

accounts, an error has occurred. It follows

that the sum of debits and the sum of the

credits must be equal in value.

Page 3 of 21

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 02

March 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 211

Double-entry bookkeeping is not a

guarantee that no errors have been made—

for example, the wrong ledger account may

have been debited or credited, or the entries

completely reversed.

1.2 Accounting Entries

In the double-entry accounting system, two

accounting entries are required to record

each financial transaction. These entries may

occur in asset, liability, income, expense, or

capital accounts. Recording of a debit

amount to one or more accounts and an

equal credit amount to one or more accounts

results in total debits being equal to total

credits for all accounts in the general ledger,

If the accounting entries are recorded

without error, the aggregate balance of all

accounts having positive balances will be

equal to the aggregate balance of all

accounts having negative balances.

Accounting entries that debit and credit

related accounts typically include the same

date and identifying code in both accounts,

so that in case of error, each debit and credit

can be traced back to a journal and

transaction source document, thus

preserving an audit trail. The rules for

formulating accounting entries are known as

"Golden Rules of Accounting". The

accounting entries are recorded in the

"Books of Accounts". Regardless of which

accounts and how many are impacted by a

given transaction, the fundamental

accounting equation A = L + OE will hold,

i.e. assets equals liabilities plus owner's

equity.

1.3 Approaches

There are two different ways to memorize

the effects of debits and credits on accounts

in the double entry system of bookkeeping.

They are the Traditional Approach and the

Accounting Equation Approach. Irrespective

of the approach used, the effect on the books

of accounts remains the same, with two

aspects (debit and credit) in each of the

transactions

Traditional (British) approach

Following the traditional approach (also

called the British approach) accounts are

classified as real, personal, and nominal

accounts. Real accounts are accounts

relating to assets and liabilities including the

capital account of the owners. Personal