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Double-Entry Bookkeeping

Recording every transaction as equal and opposite debits and credits.

Area
Accounting
In this area
51 terms of 257

Double-entry records each transaction twice — as a debit to one account and a credit to another of equal value. Receiving stock debits inventory and credits payables; nothing appears from nowhere.

The self-balancing structure is what makes accounting checkable. If total debits do not equal total credits, there is definitely an error, and the system can say so before anyone reads a report.

How it is calculated

Assets = Liabilities + Equity

The accounting equation the double-entry system keeps in balance at all times.

Double-Entry Bookkeeping is not just a definition here

Accounting runs on this vocabulary every day in AWRA OpsHub — 51 of our 257 glossary terms describe things the platform actually does.