The double-entry system of accounting is a fundamental concept which is used in the accounting process. This is the underlying present-day bookkeeping and accounting, which states that every financial transaction has an equal and an opposite effect in at least two different accounts. This is to satisfy the equation:Asset = Equity + LiabilityIn the double-entry system, the transactions are recorded in terms of debits and credits. Since a debit in one account offsets the credit in another, the sum of all the debits is required to be in sync with the sum of all credits.