Double entry is the main method of accounting

All business transactions are of a dual nature, and therefore it is customary to reflect them in the balance sheet by a double entry method. In accounting, a double entry is an interrelated and simultaneous reflection in the balance sheet of business transactions by the same amount on a loan of one balance sheet account and the debit of the other. In this case, the mutual communication arising between the accounts is usually called the correspondence of accounts, while the accounts themselves are called correspondent accounts . Balance sheet accounts and double entry, in fact, are methodological techniques, without which it is impossible to carry out accounting.

The recording of any business transaction is possible only on the basis of the primary documents, with which it is confirmed. The double entry makes it clear where the funds came from and where they left, what transactions have made changes to these funds, and, accordingly, the sources of their formation, as well as what financial results are characterized by production activity.

Economically, the double entry reflects the dual nature of the enterprise's assets, and therefore in the balance sheet it is viewed from two positions: the composition and placement of the balance in the asset, and the sources of formation are in the passive. The total sum of records in the asset is always equal to the total of those in the passive, so that you can easily verify the accuracy of accounting entries.

The creation or construction of postings, reflecting the essence of economic operations, requires a specialist accountant creative approach and a deep understanding of the essence of this process, understanding the changes to which they lead. The employee has to deal with a variety of documents. Each of them is the bearer of economic and legal information - information about the flow of money and material values.

One of the steps preceding the recording of an operation on correspondent accounts is preliminary accounting processing of primary documents. The selection and double entry on each correspondent account document - account assignment - is certified by the signature of the accountant who made it. Correctness of correspondence of accounts is of fundamental importance in the organization of accounting, its reality and reliability, since in the foreground in any case - a true representation of business transactions in the accounts.

All accounting documents - this is a written certificate of the fact of accomplishment or of the right to accomplish an economic transaction, they serve as an important proof of its reliability.

The absence of any primary documents or their incorrect execution can create serious problems not only with the inspection bodies, but also with the employees of the enterprise, investors, partners, suppliers, customers, etc. Consequently, double entry as a principle of dual reflection on accounts and the main method of accounting, requires an indispensable confirmation of its validity by primary documents. Their balance serves as a confirmation of the reality and correctness of accounting.

It is curious that, in addition to double registration in an equal amount of every fact of economic activity, accounting presupposes the duality of many other procedures and attributes. For example, there are two systems of records - systematic and chronological, two types of registration - analytical accounting and synthetic, two groups - material and personal accounts, each account has two sections - debit and credit. In all facts of economic life, two persons, two sides, participate. All information flows also have two points - input and output. Even an accountant performs any work twice - first registers the facts, and then checks the correctness of the work done. The duality of accounting is observed in all its manifestations.

In accounting, three indispensable constituent elements are always formed: accounts, double entry and balance. They support the illusory harmony, because the debit is always equal to the loan, and the asset always converges with the passive.