Double entry system
The nearly universal practice in bookkeeping and accounting, by which each transaction causes at least two changes in the accounts. A credit entry in one account causes a corresponding debit entry in another account, thereby maintaining the accounting equation:
Assets = Liabilities + Owners’ Equity
and
Debits = Credits
For example, an increase in a company’s assets on the balance sheet) might be accompanied by either
a corresponding increase in either owner’s equities or liabilities, on the other side of the balance sheet (opposite the Assets side), maintaing the balance sheet "balance."
or
a corresponding decrease in cash on hand on the same side of the balance sheet (with Assets), thereby maintaining the balance sheet "balance."
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