Accounting Dictionary - Accounting Terms & Definitions

A: Double Entry Accounting

Double Entry Accounting system of a process of recording business transactions by reflecting decreases and increases in accounts (categories of assets, liabilities and equity) which results in equality between Debit and Credit.

The basis for Double Entry Accounting is an Accounting Equation, which reflects equality between Debit and Credit, i.e. total value of assets equals total sum of equity and liabilities. In Double Entry Accounting each business transaction is recorded by at least two entries, therefore is is called double entry.

 

 

 

 

 

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