Double-entry Accounting
In the fifth video of the Accounting Basics series, Saket explores the notion of double-entry bookkeeping, discussing the numerous rules associated with it along with its impacts on the financial statements.
Overview
The double entry system of bookkeeping is a method of recording transactions based on a set of rules. Every transaction has two impacts, a Debit and a Credit. The rule is that “for every debit, there is corresponding credit and for every credit, there is a corresponding debit”. It is based on the accounting equation; Assets = Liabilities + Equity.
Key learning objectives:
What are the rules of the double entry accounting system?
What is the impact of double entry accounting on the different elements of the financial statements?
Summary
Expert
Saket Modi
Saket is a financial trainer and consultant based out of London. He specialises in advanced accounting, financial reporting and financial analysis, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and Financial instruments.
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