Double-Entry Accounting
Double-entry accounting is an accounting system where every financial transaction is recorded in at least two accounts, ensuring that the accounting equation remains balanced. Each journal entry has two equal and opposite effects:
- A debit (Dr.) – An increase in assets or expenses, or a decrease in liabilities, equity, or revenue.
- A credit (Cr.) – An increase in liabilities, equity, or revenue, or a decrease in assets or expenses.