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Double Entry AccountingLesson One: Double Entry Accounting (This lesson) Lesson Two: The Basic Accounting Equation: Another Viewpoint Lesson Three: Debits and Credits (What they really mean) Lesson Four: Equity Example (The owner investing in his business) Lesson Five: Liability Example (Taking out a loan) Lesson Six: Asset Example (Buying an asset) Lesson Seven: Drawings Example (Withdrawing cash from the business for personal use) Lesson Eight: Income Example (Income received in cash) Lesson Nine: Accrued Income - part 1 (Income that is owing to you) Lesson Ten: Accrued Income - part 2 (Getting paid by a debtor - someone who owes you) Lesson Eleven: Expenses Example (Cash expenses) Lesson Twelve: Accrued Expenses - part 1 (Expenses you owe to another) Lesson Thirteen: Accrued Expenses - part 2 (Paying off debts) WARNING: If you're struggling with debits and credits and you've come straight to this page (without checking out some of the earlier sections), you may still run into some trouble... It's highly, highly recommended you backtrack a bit, otherwise this section won't make complete sense... First start with the previous section on Basic Accounting Transactions There you'll go through each type of transaction and gain a thorough understanding of how each transaction affects the Basic Accounting Equation, which, in turn, is one of the lessons from the section Basic Accounting Concepts, (the first section of this site - and a section I recommend to everyone, not just beginners). Use your judgement and choose carefully... and remember to always go back to an earlier section if you're getting confused! When we first started we asked the question, What is Accounting? and learnt that it is a system of recording information about a business.Well, this system has a specific name. And that name is the double entry system of accounting. 
Double entry literally means two entries. And we literally make two entries. In the lessons in this section I will show you how we make these two entries, what a debit and a credit really are, and how these things all tie in with the
Basic Accounting Equation.
Before we head into the meat of this section, we're going to take a look at an alternative viewpoint of the Basic Accounting Equation. This short but powerful lesson will provide you with even greater certainty on the basic accounting equation, and connects this key equation with the concept of two entries in our double-entry system, as well as with the upcoming lesson on Debits and Credits (what they really mean). This second lesson shows that it's really much simpler than you think. After we have a clear understanding of what these two overly complicated terms really mean, and how they relate to the basic equation, we're going to start applying debits and credits ... to the same transactions we went through before with George's Catering. Lesson One: Double Entry Accounting (This lesson) Lesson Two: The Basic Accounting Equation: Another Viewpoint Lesson Three: Debits and Credits (What they really mean) Lesson Four: Equity Example (The owner investing in his business) Lesson Five: Liability Example (Taking out a loan) Lesson Six: Asset Example (Buying an asset) Lesson Seven: Drawings Example (Withdrawing cash from the business for personal use) Lesson Eight: Income Example (Income received in cash) Lesson Nine: Accrued Income - part 1 (Income that is owing to you) Lesson Ten: Accrued Income - part 2 (Getting paid by a debtor - someone who owes you) Lesson Eleven: Expenses Example (Cash expenses) Lesson Twelve: Accrued Expenses - part 1 (Expenses you owe to another) Lesson Thirteen: Accrued Expenses - part 2 (Paying off debts) Ask Us a Question About This Lesson
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