I understand how to do double entry book keeping, but I am curious on what mathematical principle is Double entry book keeping based off of. I feel like there must be some sort of concept/ proof/ mathematical principle that makes double entry book keeping the most efficient way to do accounting but I can’t seem to find anything on the internet besides how to do Double entry book keeping. Thus my question is what is the name of the law or principle that allows double entry book keeping to successfully keep the accounting equation balanced no matter if one side or both sides of the equation are affected, while only using debiting and crediting to achieve this. Thank you
USA Double Entry Book Keeping
- Thread starter bencooper
- Start date
Hi Ben
Double entry has no law or principle. It is a "definition". The same is true for saying there are "360 degrees in a circle". Consider that "single entry " bookkeeping (like a checkbook register) tells you how much money you have while double entry tells you where it has gone or come from. That's the benefit of it.
Double entry has no law or principle. It is a "definition". The same is true for saying there are "360 degrees in a circle". Consider that "single entry " bookkeeping (like a checkbook register) tells you how much money you have while double entry tells you where it has gone or come from. That's the benefit of it.
