What is Double-Entry Accounting?
- Double-Entry Accounting
- Double-entry accounting is the principle that every financial transaction must be recorded as both a debit in one account and a credit in another, keeping the accounting equation balanced.
The Debit-Credit Rule
For every transaction, total debits must equal total credits. Asset and expense accounts increase with debits; liability, equity, and income accounts increase with credits. For example: selling goods on credit → Debit Accounts Receivable (asset increases), Credit Sales Revenue (income increases).
Double-Entry in ERPNext
ERPNext enforces double-entry accounting automatically. You never manually enter both sides — submit a Sales Invoice and ERPNext debits Debtors and credits Revenue. The Journal Entry form is the only place both sides are visible, and it prevents submission if debits ≠ credits.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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