Accounting Entries

翻译

The double entry accounting system requires that each accounting transaction must be recorded in two places. This is accomplished by every transaction being composed of two parts, one part as a debit and the other as a credit. The debit part is entered in the left side of an account, and the credit part is entered in the right side of an account. This simple basic accounting system is responsible for recording, measuring and communicating economic information about businesses to the users.

双记账制要求，每一笔会计交易必须在两个地方记录。这是通过每笔交易由两部分组成来实现的，一部分是借方，另一部分是贷方。借方被输入到一个帐户的左边，贷方被输入到一个帐户的右边。这种简单的基本会计系统负责记录、测量和向用户传达企业的经济信息。

Accounting Entries

Accounting, also known as Bookkeeping, is the system of recording financial transactions. It is one of the most important parts of all businesses, and it is essential to maintain accurate information to ensure business success. Accounting entries are the records that are kept by the business, which show the money moving into and out of a business.

Accounting entries can be broken down into two major categories: debit and credit. Each accounting entry is recorded in such a way that the total sum of all debits equals the total sum of all credits, which is known as the accounting equation. This account balance is known as the ‘double-entry’ and it ensures that all transactions are balanced.

When a company receives money, it is recorded as a debit entry. For example, if a company receives $10,000 from a customer, the company will record an increase in accounts receivable and a decrease in cash. For example, the journal entry for this transaction would look as follows: Accounts Receivable: +$10,000, Cash: -$10,000.

On the other hand, if a company spends money, it is recorded as a credit. For instance, if a company pays $5,000 for goods, the company will record a decrease in accounts payable and an increase in cash. The journal entry for this transaction would look as follows: Accounts Payable: -$5,000, Cash: +$5,000.

Accounting entries are essential in any business, as they keep track of a company’s financial activities. Proper financial record keeping ensures that a company’s financial situation is accurate and up-to-date. It also allows a company to make informed decisions and ensure that it is meeting its financial objectives.