3-THE GRAPHIC REPRESENTATION OF THE ACCOUNTING SYSTEM; THE
DOUBLE-ENTRY BOOKKEEPING METHOD
In accounting, to record the eects of transactions, since centuries is used the
double entry bookkeeping method which is a tool to give a standard graphic
representation of the accounting system, based on a little number of (simple)
rules:
- identify the accounts that change. The “account” is the object of the change
- choose either between the general journal or the t-accounts (graphic
instrument)
- CONVENTIONALLY, left section is debit and right section is credit
- Everytime a transaction occurs, two or more accounts change, and the total
amounts debited (on the left) must be equal to the total amounts credited
(on the right) following the rules as below:
every time an account changes during a period, you need a new T
