In double entry book keeping system:
Last updated Jun 24, 2026
Correct Answer:
Option C —
recording a transaction and giving it debit & credit entry.
Why Option C is CorrectThe "double" in double-entry doesn't mean recording the same thing twice for the sake of it; it refers to the duality of the transaction. For every Debit (Dr.), there must be a corresponding Credit (Cr.) of an equal amount.
Example: If a business buys a laptop for $1,000 in cash:
The Office Equipment account is debited (Assets increase).
The Cash account is credited (Assets decrease).
Why the other options are incorrect:
A: Recording in "two people's accounts" is incorrect because a transaction might involve an internal account (like Depreciation or Rent) rather than another person.
B: It doesn't mean keeping "two separate books." All entries are typically kept in one General Ledger.
D: "Recording two times" is misleading. It’s one recording process that affects two sides (Debit and Credit) of the ledger.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
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