The double-entry system of bookkeeping refers to a system of accounting under which both of the aspects (i.e. debit and credit) of every transaction are recorded in the accounts involved. For each transaction, this means that a bookkeeping entry will have to be made to show an increase or decrease of the other item
Materiality principle: This principle requires that the items or events having an insignificant economic effect or not being relevant to the user’s need not be disclosed. In other words, only significant items should be considered when preparing financial statements.
Journalizing is the act of recording transactions in the journal. The original information to be recorded is to be found in the source documents which include sales and purchase invoices, debit and credit notes for return, ban paying in slips and cheque counterfoil, receipts for cash paid out and received and correspondence containing other financial information.