Double entry: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Update link.) |
imported>Doug Williamson (Layout.) |
||
| Line 17: | Line 17: | ||
2. | 2. | ||
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. | 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. | ||
Revision as of 07:35, 15 October 2017
1.
Accounting
The dual aspect concept that every accounting transaction has two sides.
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.
This system is sometimes known as 'double entry bookkeeping'.
2.
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.
