Double-Entry

When transactions are entered using the double-entry system, the unbreakable rule is that the total debit and credit values of the transaction must be the same.

This means that even after millions of transactions, the two columns in the Trial Balance will always be equal.

There is no limit to the number of accounts that can be affected by a transaction.

VAT on Sales is always a credit and VAT on costs is always a debit.

Standard transaction types in double-entry format:

Next steps: Control Accounts