bookkeeping is the accounting equation:

Every transaction recorded will keep this equation in balance. For example, if a company buys a new piece of equipment (increasing an asset), it can spend cash (reducing an asset) or take on a loan (increasing a liability). Based upon where an account sits within the accounting equation determines its normal balance - in this example, a debit to assets increases assets, whereas a credit to liabilities increases liabilities.

The use of double-entry

1.Previous
3.Next