Double Entry (Noun)
Meaning
Bookkeeper debits the transaction to one account and credits it to another.
Classification
Nouns denoting acts or actions.
Examples
- A double_entry in the journal shows that the bookkeeper debits the transaction to the accounts payable account and credits it to the cash account.
- The bookkeeper enters each transaction in the journal using the double_entry method, which helps maintain a balanced trial balance.
- Double_entry bookkeeping allows accountants to prepare a balance sheet, where assets are equal to liabilities plus equity.
- In the double_entry system, every transaction affects at least two accounts – one account is debited and the other is credited.
- The accounting software automatically performs double_entry accounting, reducing the need for manual journal entries.