double-entry book-keeping

double-entry book-keeping
A method of recording the transactions of a business in a set of accounts, such that every transaction has a dual aspect and therefore needs to be recorded in at least two accounts. For example, when a person (debtor) pays cash to a business for goods purchased, the cash held by the business is increased and the amount due from the debtor is decreased by the same amount; similarly, when a purchase is made on credit, the stock is decreased and the amount owing to creditors is increased by the same amount. This double aspect enables the business to be controlled because all the books of accounts must balance.

Big dictionary of business and management. 2014.

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  • double entry book-keeping — ➔ book keeping …   Financial and business terms

  • double-entry book-keeping — A method of recording the transactions of a business in a set of accounts, such that every transaction has a dual aspect and therefore needs to be recorded in at least two accounts. For example, when a person (debtor) pays cash to a business for… …   Accounting dictionary

  • single-entry book-keeping — A book keeping system that only records one aspect of each transaction, i.e. either a debit or a credit. Compare: double entry book keeping …   Accounting dictionary

  • book-keeping — ˈbook ˌkeeping also book keeping noun [uncountable] ACCOUNTING the recording of all the money received into and paid out from a business: • Every business must have an accounts function where income and expenditure book keeping is done. ˌdouble… …   Financial and business terms

  • double-entry cost accounting — The maintenance of cost accounting records using the principles of double entry book keeping …   Accounting dictionary

  • Double-entry bookkeeping system — A double entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts. The name derives from the fact… …   Wikipedia

  • book of prime entry — A book or record in which certain types of transaction are recorded before becoming part of the double entry book keeping system. The most common books of prime entry are the day book, the cash book, and the journal …   Accounting dictionary

  • book of prime entry — A book or record in which certain types of transaction are recorded before becoming part of the double entry book keeping system. The most common books of prime entry are the day book, the cash book, and the journal …   Big dictionary of business and management

  • entry — A record made in a book of account, register, or computer file of a financial transaction, event, proceeding, etc. See also: double entry book keeping …   Accounting dictionary

  • entry — A record made in a book of account, register, or computer file of a financial transaction, event, proceeding, etc. See also double entry book keeping …   Big dictionary of business and management

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