Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 31 - No. 25)
In double-entry bookkeeping, what is the fundamental principle that must always be followed?
Total debits must always equal total credits.
Total assets must always equal total liabilities.
Every transaction must have an impact on the profit and loss account.
The debit side of all accounts must always be greater than the credit side.
Explanation
The core principle is that for every transaction, the debits must equal the credits to maintain the accounting equation's balance.
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