Debits and Credits: Double Entry Bookkeeping
Debits and credits are at the core of double-entry bookkeeping or accrual accounting,and reporting the financial performance of an entity via the financial statements. Why We Need Debits and Credits In double-entry bookkeeping, each transaction is recorded using both a debit and a credit. To illustrate, let’s assume that a purchase was made for office supplies at $45.00. The transaction … Read more