Double entry system

Business using the double entry system to record day-to-day transactions (assets, liabilities & capital)

double entry

Debit means receiving

Credit means giving

For example:

On 1st December 2014, a business purchases a motor vehicle by cash, amounted $4500.

The business received motor vehicle and the cash is paid. So, the double entry should be Debit motor vehicle & Credit cash.

example double entry

 

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