Double-Entry Accounting

A method of accounting in which, for every debit entry, there must be a corresponding credit entry of the same amount. Every business transaction must be represented by at least two changes.

The Rule of Double-Entry Accounting:

• We have learned that every business transaction involves at least two changes. 
• The change must cause the accounting equation to maintain its equality.
• For every debit entry, there must be a corresponding credit entry of the same amount.