Double entry and Double entry bookkeeping: Difference between pages

Latest revision as of 05:21, 20 July 2022

Accounting.

A system of bookkeeping in which every accounting transaction has two sides.

Therefore the balance sheet should always remain in balance.

The two sides of the recording of every accounting transaction are conventionally known as the Debit entry and the Credit entry.

Or sometimes the Debit and Credit legs.

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+''Accounting''.
-''Accounting''
+A system of bookkeeping in which every accounting transaction has two sides.
-The dual aspect concept that every accounting transaction has two sides.  (Therefore the balance sheet should always remain in balance.)
+Therefore the balance sheet should always remain in balance.
-For example, if services are sold by a company for cash, the company's Sales figure increases AND its Cash increases.
-Taking another example, if a company borrows money, its Cash increases AND its Liabilities (to repay the money in the future) also increase.
+The two sides of the recording of every accounting transaction are conventionally known as the Debit entry and the Credit entry.
-This is sometimes known as 'double entry bookkeeping'.
+Or sometimes the Debit and Credit ''legs''.
-.
-An error resulting from the inappropriate duplication or inappropriate repetition of an entry or part of an entry, in a financial information system or elsewhere.
 == See also ==
 * [[Balance sheet]]
-* [[Book entry]]
+* [[Bookkeeping]]
-* [[Book keeping]]
 * [[Credit]]
 * [[Debit]]
-* [[Double counting]]
+* [[Double entry]]
-* [[Journal entry]]
+* [[Duality principle]]
-* [[Off balance sheet finance]]
+* [[Journal]]
 [[Category:Accounting,_tax_and_regulation]]
-[[Category:Compliance_and_audit]]