The features of double entry system are as follows:
- Two parties: transaction takes place only if there are two parties- one party receiving the benefit other party giving or parting with the benefit.
- Each party is affected (by the transaction) in opposite direction but with the same amount.
- Each transaction affects at least two items in an accounting equation. Accounting equation is composed of three elements namely Assets, Liabilities and Capital.
- Account receiving the benefit is debited and recorded on the left hand side and the account rendering the benefit is credited and recorded on the right hand side.
- For each transaction debit amount is equal to the credit amount.