WARNING: If you're really struggling with double entry accounting and you've come straight to this page, you might find it a little tricky... The lessons on this site build up step-by-step, so if you haven't reviewed any of the earlier lessons, you may want todo so first.
Start with the previous section on Basic Accounting Transactions. In those lessons you'll go through each type of transaction and gain a thorough understanding of how each transaction affects the basic accounting equation. Revising these earlier lessons should make your ongoing studies much easier.
What is the Double-Entry System of Accounting?
In one of our first lessons we asked the question, What is Accounting? and learned that it is a system of recording information about a business.
Well, this system has a specific name.
That name is the double entry system of accounting.
Double entry means two entries.
And we literally make two entries - for every single transaction.
After that we'll go through each of the transactions we went over previously with our sample business, George's Catering, but this time we'll delve deeper and go over the exact debit and credit entry for each one.
But before all of that, in the 2nd lesson in this section, we're going to take a look at an alternative viewpoint of the basic accounting equation. This short but powerful lesson should provide you with even greater certainty on the accounting equation and give you a better understanding of the two entries in our double entry accounting system.
So, what are you waiting for? Time to get stuck into double entry accounting and the debit and credit entries.
Click the links in this section to go through each of the lessons.