Double-entry bookkeeping


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Double-entry bookkeeping

Accounting method that records each transaction as both a credit and a debit in different accounts.

Double-Entry Bookkeeping

A system of accounting where every transaction is recorded as a debit to one account and a credit to another. That is, one who uses a double-entry bookkeeping system records each transaction twice, such that each credit (representing revenue) is recorded as a credit to one's capital account and as a debit on one's bank account. For example, if a company sells a product for $100, it adds $100 to its capital account and subtracts $100 to its bank account. One way of conceptualizing the bank account is from the bank's perspective: the debits are debits because any asset in a bank account represents a liability for the bank; this is why they are subtracted instead of added. However, the data are recorded twice to prevent errors in bookkeeping: the total debits and credits recorded should add to zero.
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The lecturer--who was very engaging--happened to mention the word Venice in association with the origin of double-entry bookkeeping and some illustrious person called Luca Pacioli who had published a book on the subject in Venice.
In a system of double-entry bookkeeping, it depends on whether the other side of the transaction is reported or omitted as well.
The Contractor shall also make findings on budget stability, consider the formal treatment of the financial statements and assess the status of implementation of double-entry bookkeeping.
For a long time, until the beauty and symmetry of double-entry bookkeeping finally clicked, I could explain to people what a balance sheet was not, even though I wasn't quite sure what it was.
Preparations are under way to celebrate the 500th anniversary of double-entry bookkeeping.
A later trouble switching to the double-entry bookkeeping must be possible.
The blurb promises insights into double-entry bookkeeping, business start-ups and acquisitions, UK Gaap, IFRS, valuation methods, ratio analysis and how to negotiate with banks--all through the story of Amanda, who takes her salad-dressing business from idea to success and sell--off.
Jahrhundert: Die Buchhaltung" (384-403) discusses the adoption of double-entry bookkeeping.
Venture's general ledger is a double-entry bookkeeping system, which allows the user to set up a charte of accounts and enter transactions in a general journal.
Small businesses aren't exactly putting on the green eye shades and devoting themselves to double-entry bookkeeping," Boggs noted.
At the same time, the new software will allow a possible later change to the double-entry bookkeeping.