DOUBLE-ENTRY ACCOUNTING

Double-Entry Accounting

Double-Entry Accounting

In recording transactions using the accounting principle, two accounts are always affected to remain in balance. This is often called double-entry system. For example: the company realized revenue during the month of March. The double -entry is: an increase in revenue (from the income statement) and an increase in Asset (from the balance sheet). Another example is the company is required to pay rent for the month of March. The double-entry is: an increase in expense (income statement) and an increase in liability (balance sheet).

In recording transactions using the accounting principle, two accounts are always affected to remain ...