The Accounting Model
The Accounting Model is the key that unlocks the mystery of double-entry accounting. It is made up of three very simple parts: The first part is a ledger page with a line drawn down the middle (like a big T) automatically creating a left and right side of the dividing line. However, in accounting language the word…
What does Double-Entry mean?
Double-entry is a method of accounting that uses two sides of a ledger page to keep track of transactions. The accounting equation, Assets = Liabilities + Equity is the foundation for this system. All entries on the left (debit) side must equal all entries on the right (credit) side of the ledger. When both sides…
