Double entry principle

Double entry principle is a fundamental principle in accounting. According to it, every economic operation must be recorded on two opposite sides of the ledger. This means that each transaction must have both a debit entry (entry on the left) and a credit entry (entry on the right) of the same value. This principle is intended to balance the ledgers and ensure the accuracy of the financial recording. This approach makes it possible to track the flow of funds and control the balance between the company's assets and liabilities.