The Double-Entry System
Bookkeeping in the United States employs the double-entry system. This means that two journal entries are made for each transaction. One entry records the transaction itself, and the other records the description of the transaction. These two entries offset one another so that the net effect on the books is zero. In other words, the books must balance.
The double-entry system requires two entries: one debit and one credit. A debit is simply an entry on the left side of an account. A credit is an entry on the right side of an account.
T-accounts represent two sides of an account in a ledger. A ledger may ...