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Double Entry

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As the name suggests, every transaction involves two equal and opposite entries. One entry is a Debit (Dr) and the other a Credit (Cr); hence the term, "Double-Entry".

For each double-entry (also called transaction) the Debits (Drs) must equal the Credits (Crs), which provides a built-in error check.

The only two errors that can be made when using a Double-Entry system are either one of misclassification or omission. A misclassification could occur if a Dr or Cr is made into the wrong account. An omission could occur if you forget to make an entry.

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Last modified: June 1, 2008