All 5 Double-Entry Bookkeeping questions
More in Double-Entry Bookkeeping
What are the rules of debit and credit? Record: the owner invests $5,000 cash into the business. Record: the business pays $800 rent by cash. Why does double-entry guarantee the trial balance balances?
Advertisement
Financial Accounting › Double-Entry Bookkeeping

What is double-entry bookkeeping?

Beginner

Answer

A system where every transaction is recorded with equal debits and credits in at least two accounts, keeping the books in balance.
Every entry: total Debits = total Credits
Real-world example It underpins every accounting system, from ledgers to modern ERP software.
All 5 Double-Entry Bookkeeping questions