TeachMeFinance.com - explain double entry
double entry -- a method of bookkeeping in which there are two entries for each transaction, one as a debit and the other as a credit, that check and balance each other. See single entry.
single entry -- a method of bookkeeping in which each transaction is entered only once on the account books. See double entry.
Double entry -- The system of bookkeeping by which two entries, one credit and one debit, are made of every transaction. In double entry a day-book, journal and ledger are the essential books, although a cash-book, bill-book, stock-book, invoice- book, etc., are usually added. By the double entry system every transaction is made to appear on the record as both debtor and creditor by observance of the principle that, in every instance, the thing obtained is debtor to the thing given and the thing given is creditor of the thing obtained.
About the author
Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.