What is double entry journal style?

The double-entry journal style of accounting is a system of recording financial transactions in which every transaction is recorded in at least two accounts, with one account being debited and the other account being credited. This ensures that the total debits in the journal always equal the total credits, and that the accounting equation (Assets = Liabilities + Owner's Equity) is always in balance.

The double-entry journal style of accounting is the most common accounting system used by businesses because it provides a complete and accurate record of all financial transactions. It also allows for easy tracking of financial activity, and for the preparation of financial statements.

Here is an example of a journal entry for a simple transaction:

| Account | Debit | Credit |

|---|---|---|

| Cash | $100 | |

| Sales Revenue | | $100 |

This journal entry records the sale of $100 worth of goods for cash. The cash account is debited because the cash balance has increased, and the sales revenue account is credited because the business has earned $100 in revenue.

The double-entry journal style of accounting is a powerful tool for managing financial data. It allows for the accurate recording of financial transactions, the easy tracking of financial activity, and the preparation of financial statements.