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Double Entry Bookkeeping

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A Bit of History on the Double Entry Accounting System ... Double entry bookkeeping is a system of bookkeeping which records each transaction ... SkiptocontentHomeDoubleEntryBookkeepingprovidesawidevarietyoftutorials,examples,references,andno-nonsenseadviceonbookkeepingandaccounting.Itaimstoanswerallthosequestionsyou’vealwayswantedtoask...andsomeyoudidn’tknowyouneededto.Atdoubleentrybookkeeping.comyouwilllearnhowtounderstandanduseyouraccountingrecordstomanageyourbusiness.Weofferfreetutorialsinallaspectsofbookkeepingandaccounting.DoubleEntryBookkeepingTutorialsSelectacategoryfromthemenutotheleftorchoseoneoftheTutorialsbelow.PopularTutorialsCostApportionmentofGeneralOverheadTypesofAccountsinAccountingDepreciationDepletionandAmortizationRetailInventoryMethodOvertimePremiuminCostAccountingDoubleEntryBookkeepingExamplesThebestwaytolearnistolookatexamples.Atdoubleentrybookkeeping.comyoucanlookatexamplesofhowyoucanapplytheprinciplesandconceptsdiscussedintheTutorialsinpractice.BookkeepingExampleAccountDebitCreditAccountsreceivable100Revenue100Total100100SelectacategoryfromthemenutotheleftorchoseoneoftheExamplesbelow.PopularExamplesPaymentofaLiabilityUsingCashAllowanceMethodForBadDebtFixedAssetsPurchaseIncurringaLiabilityObsoleteInventoryAllowancePersonalExpensesandDrawingsDoubleEntryBookkeepingReferencesAtdoubleentrybookkeeping.comyouwillfindreferencesforallourtopics.Thereferencesareusuallyintheformoftablesandserveasquickguidesorcheatsheetsforeachbookkeepingandaccountingtopic.PopularReferencesGrowingAnnuityPaymentFormulaPVFutureValueAnnuityDueTablesPresentValueofaGrowingPerpetuityFormulaFutureValueAnnuityFormulaPeriodictoContinuousInterestRateFormulaDoubleEntryBookkeepingQuizzesTestyourknowledgeofdebitsandcredits.Atdoubleentrybookkeeping.comyouwillfindaselectionofaccountingquizzes.PopularQuizzesQuiz1:BookkeepingBasicsQuizQuiz2:AccountingEquationQuizQuiz3:DebitsandCreditsQuizQuiz4:DebitsandCreditsTestQuiz5:BasicAccountingPrinciplesQuizAccountingTemplatesYoucanfindfreeaccountingtemplates,accountingforms,bookkeepingtemplatesandbookkeepingforms.PopularAccountingTemplatesBankReconciliationTemplateJournalVoucherTemplatePettyCashVoucherTemplateExpenseClaimFormTemplateAccountingRatioCalculatorFinancialProjectionsTemplateJobCostRecordTemplateJobTimeSheetTemplateMaterialRequisitionFormTAccountsTemplateAccountingWorksheetTemplatePaymentVoucherTemplateDoubleEntryAccountingRatiosYouwillfindinformationonwhatarethemostimportantaccountingratiosusedinmanagingabusiness.PopularAccountingRatiosAssetTurnoverRatioNetProfitRatioDebtEquityRatioInterestCoverageRatioDebtorDaysRatioWhatisBookkeeping?Whenyousetouttostartabusinessasanentrepreneuryouneedtobeincontrolofyourfinancesandbeabletotracktheperformanceofthebusiness.Theonlywaytoachievethisistohavegoodaccountinginformationandbeabletounderstandwhattheinformationistellingyou.Bookkeepingisdistinctfromaccountingwhichisusuallyundertakenbymoreseniorstaff.Thepurposeofthebook-keepingprocessistorecordfinancialtransactions.Theoutputfromthebookkeepingprocessthenbecomestheinputfortheaccountingprocess,whichisthelanguageofbusinessusedtointerpretandanalysetheinformation.ABitofHistoryontheDoubleEntryAccountingSystemDoubleentrybookkeepingisasystemofbookkeepingwhichrecordseachtransactiontwice.Thesystemwasfirstdevelopedinthe13thcenturyandusedbyItalianmerchants.In1494LucaPacioliamonkandmathematicianwasthefirsttopublishatreatise(Summadearithmetica)whichincludeddetailsofdoubleentrybookkeeping.PaciolirecommendedtheVenetianmethodwhichincludedthreebooksofaccount,thememorandum,thejournal,andtheledger.Thetreatisewaswidelyavailableandaccessibleandformedthebasisofdoubleentrybookkeepingpracticedtoday.Thefirstentryrecordswhatcomesintothebusiness(adebit)andthesecondentrywhatgoesoutofthebusiness(acredit).EveryDebitmusthaveacorrespondingequalandoppositeCredit.Double-Entry-Bookkeeping.ComAllbusinessesareunderpressurefromallsidesandonlywellmanagedbusinesseswillsurvive.Westartedthewebsitewithonecleargoalinmindtoofferusersawidevarietyoftutorials,examples,references,andno-nonsenseadviceonsmallbusinessbookkeepingandaccounting.Weaimtogiveyoutheinformationyouneedtohelpyouunderstandanduseyouraccountingrecordstomanageyourbusiness.Wemakebookkeepingandaccountingmoreusable,easiertonavigate,fasterandmorereliable.Inotherwords:wemakeyourbookkeepingsystemrecordswork.Whilsttherearemanyplacesthatyoucanlearndoubleentryaccountingandbookkeeping,theytendtoprovideyouwithaconfusingarrayofinformation.Thefirstruleforanybusinessistoknowwhatyou’redoing,andwhatyou’reaimingfor.Theonlywaytodothatistohavegooddoubleentryaccountingsystemrecordstoprovidequalityaccountinginformationandtobeabletounderstandwhatthatinformationmeansforyourbusiness.AbouttheAuthorCharteredaccountantMichaelBrownisthefounderandCEOofDoubleEntryBookkeeping.Hehasworkedasanaccountantandconsultantformorethan25yearsinalltypesofindustries.HehasbeentheCFOofbothsmallandmediumsizedcompaniesandhasrunsmallbusinessesofhisown.HehasbeenamanagerandanauditorwithDeloitte,abig4accountancyfirm,andholdsadegreefromLoughboroughUniversity.LastmodifiedMay17th,2022byMichaelBrownLookingToGetStarted?BookkeepingTrialBalanceIncomeStatementBalanceSheetCashFlowStatementAccountingRatiosTimeValueofMoneyOtherLatestPosts

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