Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 16 - No. 16)
What does the 'double entry' principle in accounting mean?
Every transaction is recorded twice.
For every debit entry, there must be an equal credit entry.
Assets must equal liabilities and equity.
All transactions must be checked by two different individuals.
Explanation
The double-entry bookkeeping system requires that for every transaction, the sum of debits must equal the sum of credits to maintain the accounting equation's balance.
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