double-entry bookkeeping

Definition

An accounting technique which records each transaction as both a credit and a debit. Credit entries represent the sources of financing, and the debit entries represent the uses of that financing. Since each credit has one or more corresponding debits (and vice versa), the system of double entry bookkeeping always leads to a set of balanced ledger credit and debit accounts. Selected entries from these ledger balances are then used to prepare the income statement.

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You may want to try and use double-entry bookkeeping so that you know everything is kept up to date correctly.

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Emma's accounting company used double-entry bookkeeping so that she could see how all money made by the company was being spent.

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Since they were doing a lot of financing, they often used the double-entry bookkeeping technique so they would keep track of the financing source and use.

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