Double entry: Difference between revisions
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1. | 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. | 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. | 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. | 2. ''Systems & controls - errors.'' | ||
An error resulting from the inappropriate duplication or inappropriate repetition of an entry or part of an entry | 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 == | == See also == | ||
* [[Accounting equation]] | |||
* [[Balance]] | |||
* [[Balance sheet]] | * [[Balance sheet]] | ||
* [[Book entry]] | * [[Book entry]] | ||
* [[ | * [[Bookkeeping]] | ||
* [[Credit]] | * [[Credit]] | ||
* [[Debit]] | * [[Debit]] | ||
* [[Double counting]] | * [[Double counting]] | ||
* [[Duality principle]] | |||
* [[Journal entry]] | * [[Journal entry]] | ||
* [[Lease]] | |||
* [[Off balance sheet finance]] | * [[Off balance sheet finance]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Compliance_and_audit]] | [[Category:Compliance_and_audit]] | ||
Latest revision as of 16:13, 18 July 2022
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. Systems & controls - errors.
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.
