Why Double Entry?
13 September 2012
The very idea of double entry bookkeeping is often regarded as something made up by accountants to confuse others - why else would anybody choose to record transactions twice?
The answer lies in the nature of business transactions, and a fundamental truth called "The Accounting Equation." In the simplest business start ups, resources are provided by the owner from personal funds. As the business begins, the resources it owns (ASSETS) must equal those introduced by the owner (CAPITAL). If private funds are not enough then resources must be...