An Explanation of Double Entry Bookkeeping

By |2021-08-01T20:36:48-05:00August 16th, 2019|

Introduction Every debit must have a credit and vice versa. Example Assume you write a check for your monthly rent. You reduce cash and increase expenses . Credit cash; debit rent expense. Every transaction has to be analyzed with its impact on at least two accounts. Sometimes a transaction involves more than two accounts. Example