Double-entry bookkeeping

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Related to Double entry accounting: general ledger

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 concept of double entry accounting has withstood the test of time.
Some have asserted the with the advent of computerized information systems, double entry accounting as we know it is no longer relevant.
Despite these criticisms, double entry accounting remains relevant today for a number of reasons, as follows.
Double entry accounting provides a platform for understanding the workings of virtually all accounting information systems.
To accomplish this the accountant must have an understanding of the theory of double entry accounting coupled with the workings of the software.
Tenders are invited for Appointment of a Chartered Accountant/Cost Accountant Firm for Developing Accrual based Double entry Accounting system, Preparation of Standard Comprehensive Municipal Accounts Manual, Full Transmission of current accounting system to Accrual based system within 3 Financial Years and Developing and/or Implementing Accounting Software at Bhavnagar
Tenders are invited for Migration of Single Entry Accounting System to Accrual Based Double Entry Accounting System, Preparation of Opening Balance Sheet, Updation of Fixed Asset Register, Valuation of Fixed Assets and Handholding Support - Cluster BB