Double Entry Accounting

Double Entry Accounting

Double-entry accounting is a form of bookkeeping where each and every financial transaction is entered twice into counter-balancing opposite accounts – a debit entry and a credit entry. A loan taken by a company would be accounted for as a debit to the cash account (to account for the increase in cash due to receipts on the assets side of the balance sheet) and credit to a financial liability account on the liabilities side.

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