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
An increase in a company’s assets (on the balance sheet) is accompanied by a corresponding increase in either owner’s equities or liabilities, and so on.
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