Double-entry bookkeeping system

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A double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different accounts.[1]

It was first codified in the 15th century. In modern accounting this is done using debits and credits within the accounting equation: Equity = Assets - Liabilities. The accounting equation serves as a kind of error-detection system: if at any point the sum of debits does not equal the corresponding sum of credits, an error has occurred.

Since several different types of errors result in equal sums for debits and credits, double-entry accounting is not a guarantee that no errors have been made.

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