Double - entry bookkeeping system - wikipedia Double - entry bookkeeping system This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. ( December 2013 ) Accounting Historical cost Constant purchasing power Management Tax Major types Auditing Cost Forensic Financial Fund Governmental Management Social Tax Key concepts Accounting period Accrual Constant purchasing power Economic entity Fair value Going concern Historical cost Matching principle Materiality Revenue recognition Unit of account Selected accounts Assets Cash Cost of goods sold Depreciation / Amortization Equity Expenses Goodwill Liabilities Profit Revenue Accounting standards Generally - accepted principles Generally - accepted auditing standards Convergence International Financial Reporting Standards International Standards on Auditing Management Accounting Principles Financial statements Annual report Balance sheet Cash - flow Equity Income Management discussion Notes to the financial statements Bookkeeping Bank reconciliation Debits and credits Double - entry system FIFO and LIFO Journal Ledger / General ledger T accounts Trial balance Auditing Financial Internal Firms Report People and organizations Accountants Accounting organizations Luca Pacioli Development History Research Positive accounting Sarbanes -- Oxley Act Business portal Double - entry bookkeeping, in accounting, is a system of bookkeeping so named because every entry to an account requires a corresponding and opposite entry to a different account. For instance, recording earnings of $100 would require making two entries : a debit entry of $100 to an account named `` Cash '' and a credit entry of $100 to an account named `` Revenue. '' Deciding which account has to be debited and which account has to be credited is accomplished using the accounting equation which is expressed as, Assets = Equity + Liabilities ( displaystyle ( \text ( Assets ) ) = ( \text ( Equity ) ) + ( \text ( Liabilities ) ) ). This equation serves as an error detection tool ; if at any point the sum of debits for all accounts does not equal the corresponding sum of credits for all accounts, an error has occurred. Double - entry bookkeeping is no guarantee that errors have not been made ; for example, the wrong ledger account may have been debited or credited, or the entries completely reversed. Contents 1 History 2 Accounting entries 3 Approaches 3.1 The British approach 3.2 Accounting equation approach 4 Books of accounts 5 Debits and credits 6 Double entry example 6.1 Purchase invoice journal 6.2 Bank payments journal 6.3 Supplier ledger cards 6.3. 1 Sales / customers 6.3. 1.1 Sales daybook 6.3. 1.2 Customer ledger cards 6.3. 2 General ( nominal ) ledger 6.3. 2.1 Bank account 6.3. 2.2 Unadjusted trial balance 6.3. 2.3 Profit - and - loss statement and balance sheet 7 See also 8 Notes and references 9 Further reading 10 External links History Main article : Accounting The oldest record of a complete double - entry system is the Messari ( Italian : Treasurer 's ) accounts of the Republic of Genoa in 1340. The Messari accounts contain debits and credits journalised in a bilateral form, and include balances carried forward from the preceding year, and therefore enjoy general recognition as a double - entry system. By the end of the 15th century, the bankers and merchants of Florence, Genoa, Venice and Lübeck used this system widely. However, the double - entry accounting method was said to be developed independently earlier in Korea during the Goryeo dynasty ( 918 - 1392 ) when Kaesong was a center of trade and industry at that time. The Four - element bookkeeping system was said to be originated in the 11th or 12th century. The earliest extant accounting records that follow the modern double - entry system in Europe come from Amatino Manucci, a Florentine merchant at the end of the 13th century. Manucci was employed by the Farolfi firm and the firm 's ledger of 1299 - 1300 evidences full double - entry bookkeeping. Giovannino Farolfi & Company, a firm of Florentine merchants headquartered in Nîmes, acted as moneylenders to the Archbishop of Arles, their most important customer. Some sources suggest that Giovanni di Bicci de ' Medici introduced this method for the Medici bank in the 14th century. Ragusan economist Benedetto Cotrugli 's 1458 treatise Della mercatura e del mercante perfetto contained the earliest known description of a double - entry bookkeeping system, but his manuscript was not officially published until 1573. Luca Pacioli, a Franciscan friar and collaborator of Leonardo da Vinci, first codified the system in his mathematics textbook Summa de arithmetica, geometria, proportioni et proportionalità published in Venice in 1494. Pacioli is often called the `` father of accounting '' because he was the first to publish a detailed description of the double - entry system, thus enabling others to study and use it. In pre-modern Europe, double - entry bookkeeping had theological and cosmological connotations, recalling `` both the scales of justice and the symmetry of God 's world ''. Accounting entries In the double - entry accounting system, at least two accounting entries are required to record each financial transaction. These entries may occur in asset, liability, equity, expense, or revenue accounts. Recording of a debit amount to one or more accounts and an equal credit amount to one or more accounts results in total debits being equal to total credits for all accounts in the general ledger. If the accounting entries are recorded without error, the aggregate balance of all accounts having Debit balances will be equal to the aggregate balance of all accounts having Credit balances. Accounting entries that debit and credit related accounts typically include the same date and identifying code in both accounts, so that in case of error, each debit and credit can be traced back to a journal and transaction source document, thus preserving an audit trail. The rules for formulating accounting entries are known as `` Golden Rules of Accounting ''. The accounting entries are recorded in the `` Books of Accounts ''. Regardless of which accounts and how many are impacted by a given transaction, the fundamental accounting equation of assets equal liabilities plus capital will hold. Approaches There are two different ways to memorize the effects of debits and credits on accounts in the double entry system of bookkeeping. They are the Traditional Approach and the Accounting Equation Approach. Irrespective of the approach used, the effect on the books of accounts remains the same, with two aspects ( debit and credit ) in each of the transactions. The British approach Following the British approach ( also called the traditional approach ) accounts are classified as real, personal, and nominal accounts. Real accounts are accounts relating to assets and liabilities including the capital account of the owners. Personal accounts are accounts relating to persons or organisations with whom the business has transactions and will mainly consist of accounts of debtors and creditors. Nominal accounts are revenue, expenses, gains, and losses. Transactions are entered in the books of accounts by applying the following golden rules of accounting : Real account : Debit what comes in and credit what goes out Personal account : Debit the receiver and credit the giver Nominal account : Debit all expenses & losses and credit all incomes & gains Accounting equation approach This approach is also called the American approach. Under this approach transactions are recorded based on the accounting equation, i.e., Assets = Liabilities + Capital. The accounting equation is a statement of equality between the debits and the credits. The rules of debit and credit depend on the nature of an account. For the purpose of the accounting equation approach, all the accounts are classified into the following five types : assets, liabilities, income / revenues, expenses, or capital gains / losses. If there is an increase or decrease in one account, there will be equal decrease or increase in another account. There may be equal increases to both accounts, depending on what kind of accounts they are. There may also be equal decreases to both accounts. Accordingly, the following rules of debit and credit in respect to the various categories of accounts can be obtained. The rules may be summarised as below : Assets Accounts : debit entry represents an increase in assets and a credit entry represents a decrease in assets Capital Account : credit entry represents an increase in capital and a debit entry represents a decrease in capital Liabilities Accounts : credit entry represents an increase in liabilities and a debit entry represents a decrease in liabilities Revenues or Incomes Accounts : credit entry represents an increase in incomes and gains, and debit entry represents a decrease in incomes and gains Expenses or Losses Accounts : debit entry represents an increase in expenses and losses, and credit entry represents a decrease in expenses and losses These five rules help learning about accounting entries and also are comparable with traditional ( British ) accounting rules. Books of accounts This section does not cite any sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. ( October 2014 ) Each financial transaction is recorded in at least two different nominal ledger accounts within the financial accounting system, so that the total debits equals the total credits in the General Ledger, i.e. the accounts balance. This is a partial check that each and every transaction has been correctly recorded. The transaction is recorded as a `` debit entry '' ( Dr ) in one account, and a `` credit entry '' ( Cr ) in a second account. The debit entry will be recorded on the debit side ( left - hand side ) of a General ledger account, and the credit entry will be recorded on the credit side ( right - hand side ) of a General ledger account. If the total of the entries on the debit side of one account is greater than the total on the credit side of the same nominal account, that account is said to have a debit balance. Double entry is used only in nominal ledgers. It is not used in daybooks ( journals ), which normally do not form part of the nominal ledger system. The information from the daybooks will be used in the nominal ledger and it is the nominal ledgers that will ensure the integrity of the resulting financial information created from the daybooks ( provided that the information recorded in the daybooks is correct ). The reason for this is to limit the number of entries in the nominal ledger : entries in the daybooks can be totalled before they are entered in the nominal ledger. If there are only a relatively small number of transactions it may be simpler instead to treat the daybooks as an integral part of the nominal ledger and thus of the double - entry system. However, as can be seen from the examples of daybooks shown below, it is still necessary to check, within each daybook, that the postings from the daybook balance. The double entry system uses nominal ledger accounts. From these nominal ledger accounts a trial balance can be created. The trial balance lists all the nominal ledger account balances. The list is split into two columns, with debit balances placed in the left hand column and credit balances placed in the right hand column. Another column will contain the name of the nominal ledger account describing what each value is for. The total of the debit column must equal the total of the credit column. Debits and credits Main article : Debits and credits This section does not cite any sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. ( October 2014 ) Double - entry bookkeeping is governed by the accounting equation. If revenue equals expenses, the following ( basic ) equation must be true : assets = liabilities + equity For the accounts to remain in balance, a change in one account must be matched with a change in another account. These changes are made by debits and credits to the accounts. Note that the usage of these terms in accounting is not identical to their everyday usage. Whether one uses a debit or credit to increase or decrease an account depends on the normal balance of the account. Assets, Expenses, and Drawings accounts ( on the left side of the equation ) have a normal balance of debit. Liability, Revenue, and Capital accounts ( on the right side of the equation ) have a normal balance of credit. On a general ledger, debits are recorded on the left side and credits on the right side for each account. Since the accounts must always balance, for each transaction there will be a debit made to one or several accounts and a credit made to one or several accounts. The sum of all debits made in each day 's transactions must equal the sum of all credits in those transactions. After a series of transactions, therefore, the sum of all the accounts with a debit balance will equal the sum of all the accounts with a credit balance. Debits and credits are numbers recorded as follows : Debits are recorded on the left side of a T account in a ledger. Debits increase balances in asset accounts and expense accounts and decrease balances in liability accounts, revenue accounts, and capital accounts. Credits are recorded on the right side of a T account in a ledger. Credits increase balances in liability accounts, revenue accounts, and capital accounts, and decrease balances in asset accounts and expense accounts. Debit accounts are asset and expense accounts that usually have debit balances, i.e. the total debits usually exceeds the total credits in each debit account. Credit accounts are revenue ( income, gains ) accounts and liability accounts that usually have credit balances. Debit Credit Asset Increase Decrease Liability Decrease Increase Income ( revenue ) Decrease Increase Expense Increase Decrease Capital Decrease Increase The mnemonic DEADCLIC is used to help remember the effect of debit or credit transactions on the relevant accounts. DEAD : Debit to increase Expense, Asset and Drawing accounts and CLIC : Credit to increase Liability, Income and Capital accounts. The account types are related as follows : current equity = sum of equity changes across time ( increases on the left side are debits, and increases on the right side are credits, and vice versa for decreases ) current equity = Assets - Liabilities sum of equity changes across time = owner 's investment ( Capital above ) + Revenues - Expenses Double entry example This section contains instructions, advice, or how - to content. The purpose of Wikipedia is to present facts, not to train. Please help improve this article either by rewriting the how - to content or by moving it to Wikiversity, Wikibooks or Wikivoyage. ( October 2014 ) In this example the following will be used : Books of prime entry ( Books of original entry ), also known as journals Sales Invoice Journal ( records customer invoices ) Bank Receipts Journal ( records customer & non customer receipts ) Cash Journal / Sales Journal Return inwards Journal Return outwards Journal Purchase Invoice Journal ( records supplier invoices ) Bank Payments Journal ( records supplier & non supplier payments ) The books of prime entry are where transactions are first recorded. They are not part of the double - entry system, but may be expanded by the computer as a debit to one account and a credit to another account. For example, a cash receipts transaction may cause a debit ( increase ) to a cash account and a credit ( decrease ) to an accounts receivable account. Ledger Cards Customer Ledger Cards Supplier Ledger Cards General Ledger ( Nominal Ledger ) Bank Account Ledger Trade Creditors Ledger Trade Debtors Ledger Purchase invoice journal Purchase Invoice Journal Date Supplier Name Reference Amount Electricity Widgets 10 July 2014 Electricity Company 9005 1000 1000 12 July 2014 Widget Company 156 1600 1600 -- -- -- - -- -- -- - -- -- -- - Total 2600 1000 1600 = = = = = = = = = = = = Credit Debit Debit Trade Electricity Widgets control a / c a / c a / c Each individual line is posted as follows : The amount value is posted as a credit to the individual supplier 's ledger a / c ( a / c means `` Account Code '' ) The analysis amount is posted as a debit to the relevant general ledger a / c From example above : Line 1 -- Amount value 1000 is posted as a credit to the Supplier 's ledger a / c ELE01 - Electricity Company Line 2 -- Amount value 1600 is posted as a credit to the Supplier 's ledger a / c WID01 - Widget Company The totals of each column are posted as follows : Amount total value 2600 posted as a credit to the Trade creditors control a / c Electricity total value 1000 posted as a debit to the Electricity General Ledger a / c Widget total value 1600 posted as a debit to the Widgets General Ledger a / c Double - entry has been observed because Dr = 2600 and Cr = 2600. Dr = 2600 and Cr = 2600. Bank payments journal The payments book is not part of the double - entry system. Bank Payments Journal Date Supplier Name Reference Amount Suppliers Wages 17 July 2014 Electricity Company 701 1000 1000 19 July 2014 Widget Company 702 900 900 28 July 2014 Owner 's Wages 703 400 400 -- -- -- - -- -- -- - -- -- -- - Total 2300 1900 400 = = = = = = = = = = = = Credit Debit Debit Bank Trade Wages Account Creditors control a / c control a / c Keys : PI = Purchase Invoice, BP = Bank Payment Each individual line is posted as follows : The amount value is posted as a debit to the individual supplier 's ledger a / c. The analysis amount is posted as a credit to the relevant general ledger a / c. From example above : Line 1 -- Amount value 1000 is posted as a debit to the Supplier 's ledger a / c ELE01 - Electricity Company. Line 2 -- Amount value 900 is posted as a debit to the Supplier 's ledger a / c WID01 - Widget Company. The totals of each column are posted as follows : Amount total value 2300 posted as a credit to the Bank Account. Trade Creditors total value 1900 posted as a debit to the Trade creditors control a / c. Other total value 400 posted as a debit to the Wages control a / c. Double - entry has been observed because Dr = 2300 and Cr = 2300. The daybooks are the key documents ( books ) to the double entry system. From these daybooks we create the ledger accounts. Each transaction will be recorded in at least two ledger accounts. Supplier ledger cards Supplier Ledger Cards A / c Code : ELE01 -- Electricity Company Date Details Reference Amount Date Details Reference Amount 17 July 2014 Bank Payment 701 BPDB1 1000 10 July 2014 Purchase Invoice 9005 PDB1 1000 31 July 2014 Balance c / d 0 -- -- -- - -- -- -- - 1000 1000 = = = = = = = = 1 August 2014 Balance b / d 0 A / c Code : WID01 -- Widget Company Date Details Reference Amount Date Details Reference Amount 19 July 2014 Bank Payment 702 BPDB1 900 12 July 2014 Purchase Invoice 156 PDB1 1600 31 July 2014 Balance c / d 700 -- -- -- - -- -- -- - 1600 1600 = = = = = = = = 1 August 2014 Balance b / d 700 Sales / customers Sales daybook Sales Invoice Daybook Date Customer Name Reference Amount Parts Service 2 July 2014 JJ Manufacturing SI1 2500 2500 29 July 2014 JJ Manufacturing SI2 3200 3200 -- -- -- - -- -- -- - -- -- -- - Total 5700 2500 3200 = = = = = = = = = = = = Debit Credit Credit Trade Sales Sales debtors Parts Service control a / c a / c a / c Each individual line is posted as follows : The amount value is posted as a debit to the individual customer 's ledger a / c. The analysis amount is posted as a credit to the relevant general ledger a / c. From example above : Line 1 -- Amount value 2500 is posted as a debit to the Customer 's ledger a / c JJM01 - JJ Manufacturing. Line 2 -- Amount value 3200 is posted as a debit to the Customer 's ledger a / c JJM01 - JJ Manufacturing. The totals of each column are posted as follows : Amount total value 5700 posted as a debit to the Trade debtors control a / c. Sales - parts total value 2500 posted as a credit to the Sales parts a / c. Sales - service total value 3200 posted as a credit to the Sales service a / c. Double - entry has been observed because Dr = 5700 and Cr = 5700. Customer ledger cards Customer Ledger cards are not part of the Double - entry system. They are for memorandum purposes only. They allow you to know the total amount an individual customer owes you. CUSTOMER LEDGER CARDS A / c Code : JJM01 -- JJ Manufacturing Date Details Reference Amount Date Details Reference Amount 2 July 2014 Sales invoice daybook SI1 2500 20 July 2014 Bank receipts daybook BR1 2500 29 July 2014 Sales invoice daybook SI2 3200 31 July 2014 Balance c / d 3200 -- -- -- - -- -- -- - 5700 5700 = = = = = = = = 1 August 2014 Balance b / d 3200 General ( nominal ) ledger GENERAL ( NOMINAL ) LEDGER Sales parts Date Details Reference Amount Date Details Reference Amount 31 July 2014 Balance c / d 2500 31 July 2014 Sales invoice daybook SDB1 2500 -- -- -- - -- -- -- - 2500 2500 = = = = = = = = 1 August 2014 Balance b / d 2500 Sales service Date Details Reference Amount Date Details Reference Amount 31 July 2014 Balance c / d 3200 31 July 2014 Sales invoice daybook SDB1 3200 -- -- -- - -- -- -- - 3200 3200 = = = = = = = = 1 August 2014 Balance b / d 3200 Electricity Date Details Reference Amount Date Details Reference Amount 31 July 2014 Purchases Daybook PDB1 1000 31 July 2014 Balance c / d 1000 -- -- -- - -- -- -- - 1000 1000 = = = = = = = = 1 August 2014 Balance b / d 1000 Widgets Date Details Reference Amount Date Details Reference Amount 31 July 2014 Purchases Daybook PDB1 1600 31 July 2014 Balance c / d 1600 -- -- -- - -- -- -- - 1600 1600 = = = = = = = = 1 August 2014 Balance b / d 1600 Other a / c Date Details Reference Amount Date Details Reference Amount 31 July 2014 Bank payments daybook BPDB1 400 31 July 2014 Balance c / d 400 -- -- -- - -- -- -- - 400 400 = = = = = = = = 1 August 2014 Balance b / d 400 Bank Control A / c Date Details Reference Amount Date Details Reference Amount 31 July 2014 Bank receipts daybook BRDB1 2500 31 July 2014 Bank payments daybook BPDB1 2300 31 July 2014 Balance c / d 200 -- -- -- - -- -- -- - 2500 2500 = = = = = = = = 1 August 2014 Balance b / d 200 Trade Debtors Control A / c Date Details Reference Amount Date Details Reference Amount 1 July 2014 Balance b / d 0 31 July 2014 Bank receipts daybook BRDB1 2500 31 July 2014 Sales Invoice Daybook SDB1 5700 31 July 2014 Balance c / d 3200 -- -- -- - -- -- -- - 5700 5700 = = = = = = = = 1 August 2014 Balance b / d 3200 Trade Creditors Control A / c Date Details Reference Amount Date Details Reference Amount 31 July 2014 Bank Payments Daybook BPDB1 1900 1 July 2014 Balance b / d 0 31 July 2014 Balance c / d 700 31 July 2014 Purchase Daybook PDB1 2600 -- -- -- - -- -- -- - 2600 2600 = = = = = = = = 1 August 2014 Balance b / d 700 SDB1 ; Sales Invoices Daybook Page 1 PDB1 ; Purchase Invoices Daybook Page 1 BPDB1 ; Bank Payments Daybook Page 1 BRDB1 ; Bank Receipts Daybook Page 1 The customers ledger cards shows the breakdown of how the trade debtors control a / c is made up. The trade debtors control a / c is the total of outstanding debtors and the customer ledger cards shows the amount due for each individual customer. The total of each individual customer account added together should equal the total in the trade debtors control a / c. The supplier ledger cards shows the breakdown of how the trade creditors control a / c is made up. The trade creditors control a / c is the total of outstanding creditors and the suppliers ledger cards shows the amount due for each individual supplier. The total of each individual supplier account added together should equal the total in the trade creditors control a / c. Each Bank a / c shows all the total money in and out through a bank. If you have more than one bank account for your company you will have to maintain separate bank account ledgers in order to complete bank reconciliation statements and be able to see how much is left in each account. Bank account Bank A / c Date Details Reference Amount Date Details Reference Amount 31 July 2014 Bank Receipts Day Book BRDB1 2500 31 July 2014 Bank Payments Daybook BPDB1 2300 31 July 2014 Balance c / d 200 -- -- -- - -- -- -- - 2500 2500 = = = = = = = = 1 August 2014 Balance b / d 200 Unadjusted trial balance Trial balance as at 31 July 2016 A / c description Debit Credit Sales - parts 2500 Sales - service 3200 Widgets 1600 Electricity 1000 Other 400 Bank 200 Trade Debtors Control A / c 3200 Trade Creditors Control A / c 700 -- -- -- - -- -- -- - 6400 6400 = = = = = = = = = = Both sides must have the same overall total Debits = Credits. The individual customer accounts are not to be listed in the trial balance, as the Trade debtors control a / c is the summary of each individual customer a / c. The individual supplier accounts are not to be listed in the trial balance, as the Trade creditors control a / c is the summary of each individual supplier a / c. Important note : this example is designed to show double entry. There are methods of creating a trial balance that significantly reduce the time it takes to record entries in the general ledger and trial balance. Profit - and - loss statement and balance sheet Profit and loss statement for the month ending 31 July 2014 Dr x Sales x Sales - parts 2500 x Sales - service 3200 x -- -- -- - x 5700 x Less Cost of Widgets ( 1600 ) x -- -- -- - x Gross Profit 4100 x Expenses : x Electricity 1000 x Other 400 x -- -- -- - x Less expenses ( 1400 ) x -- -- -- - x Net Profit 2700 x = = = = Balance sheet as at 31 July 2014 Dr x Current Assets x Bank A / c 200 x Trade Debtors 3200 x -- -- -- - x Assets 3400 x Current Liabilities x Trade Creditors 700 x -- -- -- - x Less Liabilities ( 700 ) x -- -- -- - x Net Current Assets 2700 x = = = = x Capital & Reserves x Revenue Reserves a / c 2700 x -- -- -- - x 2700 x = = = = See also Nostro and vostro accounts Single - entry bookkeeping system Momentum accounting and triple - entry bookkeeping Notes and references Jump up ^ Lauwers, Luc ; Willekens, Marleen ( 1994 ). `` Five Hundred Years of Bookkeeping : A Portrait of Luca Pacioli '' ( PDF ). Tijdschrift voor Economie en Management. Katholieke Universiteit Leuven. 39 ( 3 ) : 289 -- 304 ( p. 300 ). ISSN 0772 - 7674. Jump up ^ http://sjeas.skku.edu/upload/200707/87-114Owen%20Miller.PDF Jump up ^ Financial Reporting in the Pacific Asia Region edited by Ronald Ma Jump up ^ A Global History of Accounting, Financial Reporting and Public Policy : Asia... By Gary John Previts, Peter Wolnizer Jump up ^ Lee, Geoffrey A. ( 1977 ). `` The Coming of Age of Double Entry : The Giovanni Farolfi Ledger of 1299 - 1300 ''. Accounting Historians Journal. 4 ( 2 ) : 79 -- 95. JSTOR 40697544. Jump up ^ Lee ( 1977 ), p. 80. Jump up ^ Zubrinic, Darko. `` History of Croatian ''. Retrieved 26 December 2016. Jump up ^ `` SIESC Croatia 2 ''. Retrieved 26 December 2016. Jump up ^ Luca Pacioli : The Father of Accounting Archived 18 August 2011 at the Wayback Machine. Jump up ^ `` Internet, televisie, vast bellen en mobiel met 4G netwerk - KPN ''. Retrieved 26 December 2016. Jump up ^ Livio, Mario ( 2002 ). The Golden Ratio. New York : Broadway Books. pp. 130 -- 131. ISBN 0 - 7679 - 0816 - 3. Jump up ^ Poovey, Mary ( 1998 ). A History of the Modern Fact : Problems of Knowledge in the Sciences of Wealth and Society. University of Chicago Press. p. 54. ISBN 9780226675268. Retrieved 2014 - 08 - 07. In the late sixteenth - century (... ) number still carried the pejorative connotations associated with necromancy (... ). (... ) ( D ) ouble - entry bookkeeping helped confer cultural authority on numbers. It did so by means of the balance (... ). For late sixteenth - century readers, the balance conjured up both the scales of justice and the symmetry of God 's world. Jump up ^ `` Three Golden Rules of Accounting with Examples ''. 23 September 2015. Retrieved 26 December 2016. ^ Jump up to : Rajasekaran V. ( 1 September 2011 ). Financial Accounting. Pearson Education India. pp. 54 --. ISBN 978 - 81 - 317 - 3180 - 2. Retrieved 7 April 2012. Jump up ^ Accountancy : Higher Secondary First Year ( PDF ) ( First ed. ). Tamil Nadu Textbooks Corporation. 2004. pp. 28 -- 34. Retrieved 12 July 2011. Jump up ^ Edward M. Hyans ( 1916 ). Theory of accounts for accountant students. Universal Business Institute, Inc. pp. 17 --. Retrieved 7 April 2012. Further reading Gleeson - White, Jane ( November 2011 ). Double Entry. Allen & Unwin. ISBN 978 - 1 - 74175 - 755 - 2. Soll, Jacob ( April 2014 ). The Reckoning : Financial Accountability and the Rise and Fall of Nations. Basic Books. ISBN 978 - 0 - 46503 - 152 - 8. External links Wikibooks has a book on the topic of : Accounting A Concise Explanation of the Accounting Equation A tutorial on Double - entry accounting and bookkeeping A double entry GnuCash How - to Bean Counter 's bookkeeping tutorial GnuCash data entry concepts, GnuCash website GND : 4113337 - 7 Retrieved from `` https://en.wikipedia.org/w/index.php?title=Double-entry_bookkeeping_system&oldid=800390007 '' Categories : Accounting systems Italian inventions Accounting terminology History of accounting Economic history of Italy Hidden categories : Webarchive template wayback links Articles needing additional references from December 2013 All articles needing additional references Wikipedia articles needing clarification from August 2017 All articles with specifically marked weasel - worded phrases Articles with specifically marked weasel - worded phrases from August 2014 Articles needing additional references from October 2014 Articles needing cleanup from October 2014 All pages needing cleanup Articles containing how - to sections Use dmy dates from January 2011 Wikipedia articles with GND identifiers Talk Contents About Wikipedia Afrikaans বাংলা Català Čeština Dansk Deutsch Eesti Español فارسی Français 한국어 हिन्दी Hrvatski Bahasa Indonesia Italiano עברית Қазақша Latviešu Lietuvių Magyar Nederlands नेपाली 日本 語 Norsk Polski Português Română Русский සිංහල Slovenčina Српски / srpski Srpskohrvatski / српскохрватски Suomi Svenska தமிழ் Українська Tiếng Việt 文言 中文 Edit links This page was last edited on 13 September 2017, at 06 : 59. 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Question: what do you mean by double entry system of accounting
Answer: every entry to an account requires a corresponding and opposite entry to a different account