Welcome to another article, here in this article you will learn about the “Double entry accounting system, Journal entries, T ledger, and trial balance”.

First, you have to know what is double-entry system is in accounting.

Every entry has a double effect on the account so because of this, it is called a double entry system. let’s suppose if you bought some drinks for yourself then the drink is coming to you but the cash will go out because you have to pay the shopkeeper for that drinks, so in a double entry system it will pass like this, drinks debit and cash credit.

Here are some transaction entries which will help you to understand the double-entry system.

A businessman started his business in march 2021, following are transactions that take place during the month of march.

Double entries

Do it by following double entry system roles.

  1. Started business with cash of 5000.
  2. Purchase furniture for 1000 on credit from Jones.
  3. Purchase goods for cash 500.
  4. Return 500 pieces of furniture to jones.
  5. Sold goods to Rose for 1000 on credit.
  6. Pay 500 cash to jones.
  7. Received 1000 from Rose.
  8. Invest 5000 cash in a business.
  9. Withdrew 1000 cash for personal use.
  10. Sold goods for 4000 in cash.


Make the Journal entries, T ledger account, and trial balance for the above transactions.

Journal entries

  1. Cash debit 5000 and capital credit 5000.
  2. Furniture debit 1000 and A/P (jones) credit 1000.
  3. Purchase debit for 500 and cash credit for 500.
  4. A/P debit of 500 and Furniture credit for 500.
  5. A/R debit of 1000 and sales credit for 1000.
  6. A/P debit of 500 and cash credit for 500.
  7. Cash debit of 1000 and A/R credit for 1000.
  8. Cash debit for 5000 and capital credit for 5000.
  9. Drawings debit 1000 and cash credit for 1000.
  10. Cash debit of 4000 and sales credit for 4000.

T- Ledger accounts.


Double entry system


Double entry system


Double entry system


Double entry system


Double entry system


Double entry system


Double entry system


Double entry system

Trial balance

Trial balance

The double-entry system requires that each transaction must be recorded in

  1. Sequence
  2. Line by line
  3. In equilibrium

The sequence is the right option.

Choose the statement below that correctly explains a general journal

  1. An initial records book
  2. No relation to the accounting system
  3. Final report of accountings
  4. The journal entry to record completed job credits

Which double-entry accounting software is best?

There is different software that can be used for recording transactions and making other accounts and statements in the accounting system but QuickBooks is widely used for the purpose of recording accounting records.

Is QuickBooks a double-entry accounting system

It is a widely used software and yeah it is an accounting software that helps to make accounting records and financial statements and it is quite easy to use.

What is the advantages of the double-entry system?

There are many advantages of using the double-entry system in business such as knowing whether the transactions are balanced or not.

How double journey entries help a business

Double entry is the first step of accounting records with the help of double entry an accountant makes all the statements in the accounting of a business.

Does a single entry affect other entries in the accounting records?

In double-entry accounting, each transaction affects at least two accounts, for example, if a person buys goods for sale on the credit and makes a promise to pay later, now this transaction will affect two accounts one is it will increase the stock in the inventory and second it will increase the account payable as well. These are two effects one is increasing the assets in the business while the other is increasing the liability in the business.