Register now or log in to join your professional community.
Agreed with Specialists valuable comments regarding Classification and Rules of Accounting System for Double Entry Bookkeeping.
The Double Entry System in accounting and bookkeeping means that every business transaction will affect two accounts or more. For instance, if a company barrows money from a bank, the company’s liabilities in accounts payable will increase and its cash accounts will decrease. The double entry system has two equal corresponding sides known as credit and debit. The rule for a double entry system states that the total amount entered in the left side of a balance sheet (debit), must be equal to the total amount entered in the right side (Credit).
