double entry

Debit meets credit

Double entry is a bookkeeping system where every financial transaction is recorded in at least two accounts—a debit in one and a corresponding credit in another.

The method ensures the accounting equation (assets equal liabilities plus equity) stays balanced: The company switched to double-entry bookkeeping when it outgrew its spreadsheets.

If the books don't balance, an error has occurred somewhere.

Related
  • bookkeepingRecording financial transactions systematically
  • ledgerFinancial record book
  • debitSubtraction from account
  • creditRecognition or payment deferral
  • accountsRecords of transactions

balance · balance sheet · chart of accounts · journal · reconciliation · assets · liabilities · audit · spreadsheet · columns · figures · transactions · posting · entries · accountant · bean counter · trial balance · equity

Categories
Opposites
accounting method

double entrysingle entry

One-sided transaction recording

single instance

Family

double, entry, doubled, doubles, doubling, doubly, redouble, redoubled, redoubling

Familiarity
Top 500,000
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Used worldwide · Timeless · Rated G