Definition

Noun: 1. A system of bookkeeping in which every transaction is entered twice, once as a debit in one account and once as a credit in another account. This method ensures the accounting equation (Assets = Liabilities + Equity) always remains in balance and provides a self-checking mechanism for accuracy.

Usage

"Double entry" is an uncountable noun used to describe the foundational system of modern accounting. It is typically used in the phrase "double-entry bookkeeping" or "the double-entry system."

Examples

• All modern businesses use double entry to maintain accurate financial records.
• The principle of double entry requires that for every debit, there must be a corresponding and equal credit.
• Learning double-entry bookkeeping is essential for anyone studying accounting.

Advanced Usage

• The double-entry system: The complete framework of accounting based on the double-entry principle.
  • The invention of the double-entry system in Renaissance Italy was crucial for the development of modern commerce.
• To keep books on a double-entry basis: A formal way to state that one uses this accounting method.
  • The corporation keeps its books on a strict double-entry basis.

Variants and Related Words

• Double-entry bookkeeping (n. phrase): The full term for the practice of using the double-entry system.
• Single-entry bookkeeping (n. phrase): A simpler, less robust bookkeeping method where transactions are recorded only once, often contrasted with double entry.

Synonyms

• Double-entry bookkeeping (the practice itself)
• The double-entry system

Antonyms

• Single entry
• Single-entry bookkeeping

Related Idioms and Phrases

• Debits and credits: The two fundamental aspects of every transaction in a double-entry system.
  • Understanding debits and credits is the first step to mastering double entry.
• The books are in balance: A result of correctly applied double-entry bookkeeping, meaning total debits equal total credits.
  • After reconciling the accounts, the accountant confirmed the books were in balance.

Noun

1. bookkeeper debits the transaction to one account and credits it to another