Double-Entry Bookkeeping
How debits, credits, and journal entries work in dubbl.
Double-entry bookkeeping is the foundation of modern accounting. Every transaction records at least two entries: a debit and a credit. The total debits must always equal the total credits, keeping your books balanced.
Debits and Credits
| Account Type | Debit | Credit |
|---|---|---|
| Assets | Increase | Decrease |
| Liabilities | Decrease | Increase |
| Equity | Decrease | Increase |
| Revenue | Decrease | Increase |
| Expenses | Increase | Decrease |
Journal Entries
A journal entry is the record of a single transaction. In dubbl, every financial action (invoice, bill, payment, expense) creates a journal entry automatically.
Example: Recording a Sale
When you issue a $1,000 invoice:
| Account | Debit | Credit |
|---|---|---|
| Accounts Receivable | $1,000 | |
| Sales Revenue | $1,000 |
When the customer pays:
| Account | Debit | Credit |
|---|---|---|
| Bank Account | $1,000 | |
| Accounts Receivable | $1,000 |
The Accounting Equation
Assets = Liabilities + Equity
Every transaction maintains this equation. dubbl enforces balance by requiring total debits to equal total credits on every journal entry.
Manual Journal Entries
For transactions that are not covered by invoices, bills, or expenses, you can create manual journal entries in Accounting > Transactions.
See Journal Entries for details on creating and managing entries in dubbl.