Accounting · Double Entry System Concepts
Consider the following statements regarding the Double Entry System of Bookkeeping: Statement I: The double entry system was first described by Italian mathematician Luca Pacioli in the year 1494 in his book 'Summa de Arithmetica'. Statement II: In this system, every debit must have a corresponding credit, but a single transaction can never involve more than two accounts. Statement III: Real accounts and Personal accounts are permanent accounts that appear in the Balance Sheet, while Nominal accounts are temporary accounts. Statement IV: The system ignores the Dual Aspect Concept during non-monetary events. Statement V: A major advantage of this system is that it allows for the determination of net profit/loss and financial position at any given time. Which of the above statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All statements are correct
- 2Only III, IV, V
- 3Only II and IV
- 4Only I, III, V✓
Correct answer
Only I, III, V
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