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Double Entry Accounting Defined. True to its name, double-entry accounting is a standard accounting method that involves recording each transaction in at least two accounts, resulting in a debit to one or more accounts and a credit to one or more accounts.
Double Entry Bookkeeping System. Accounting equation plays a significant role as the foundation of the double entry bookkeeping system. This accounting system ensures that a companyâs accounts are always balanced and that all financial transactions are documented in detail.