Chapter $2$ Discussion: Double$-$Entry Accounting System

$108$ Replies, $108$ Unread

All businesses use what is called the double$-$entry accounting system. This system is based on the accounting equation and requires every business transaction to be recorded in at least two accounts, and the total debits recorded for each transaction to be equal to the total credits recorded. The double$-$entry accounting system also has specific rules of debit and credit for recording transactions in the accounts.

Describe and illustrate journalizing transactions using the double$-$entry accounting system.