Double-entry bookkeeping
Objective: Construct balanced two-line entries using a repeatable method.
Recommended first: Debits and credits explained
In double-entry bookkeeping, every transaction is recorded with at least one debit and at least one credit, and total debits equal total credits. This keeps the accounting equation in balance.
A four-step method
- 1. Identify the accounts affected.
- 2. Decide whether each increases or decreases.
- 3. Apply the normal-balance rule to choose debit or credit.
- 4. Check that debits equal credits.
Double entry gives two kinds of protection. Arithmetic protection: if debits do not equal credits, something is missing. Logical protection: thinking about both sides forces you to explain where value came from and where it went. The second kind matters more, because a balanced but wrong entry passes the arithmetic check. That is why the grader in this course checks accounts, sides, amounts, and dates — not just totals.
Check your work
- Did you list every account affected?
- Did you choose debit or credit using the normal-balance rule?
- Do totals match, and would the entry still be right if someone reviewed the source document?
Supplies (asset) increase → debit. Accounts Payable (liability) increases → credit. $250 each side.
| Account | Debit | Credit |
|---|---|---|
| Supplies | $250.00 | |
| Accounts Payable | $250.00 |
Common mistakes
✗ Assuming a balanced entry is correct.
✓ Check account choice and timing too; the grader will.
Guided practice
Use hints freely here.
Item 1 of 2
Debit to Supplies
A debit is posted to Supplies. Does the debit increase or decrease this account's balance?
Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 4
Credit to Notes Payable
A credit is posted to Notes Payable. Does the credit increase or decrease this account's balance?
Checking answers on Pro items requires a Pro or Lifetime plan. See plans.
Progress is saved on this device. Create a free account to keep it everywhere.
Key terms
- Double-entry bookkeeping
- Every transaction is recorded with equal debits and credits.
- Journal entry
- The first record of a transaction, listing debits and credits.
References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.