Double-Entry System
Accounting glossary · Understand, connect, apply
Double-entry bookkeeping records each transaction with equal total debits and credits across at least two accounts, preserving the accounting equation.
Example
A $200 cash purchase of supplies debits Supplies $200 and credits Cash $200.
Remember the difference
The number of accounts may exceed two. Equality of debits and credits does not guarantee correct classification or completeness.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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